Slide 1

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 2

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 3

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 4

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 5

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 6

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 7

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 8

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 9

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 10

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 11

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 12

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 13

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 14

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 15

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 16

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 17

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 18

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 19

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 20

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 21

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 22

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 23

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 24

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 25

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 26

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 27

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 28

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 29

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 30

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 31

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 32

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 33

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 34

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 35

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 36

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 37

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 38

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 39

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 40

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 41

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 42

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 43

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 44

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 45

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 46

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 47

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 48

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 49

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 50

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 51

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 52

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 53

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 54

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55


Slide 55

Wireless e-Business

RFID Introduction
LING Zong, Ph. D.
IBM Software Group
San Jose, California, U.S.A.

http://software.nju.edu.cn/lingzong

About Speaker
LING Zong (凌棕), Ph. D.
Senior Engineer/Scientist
Almaden Research Center/IBM Software Group
San Jose, California, U.S.A.
Routine Work:
1. (60%) Research and Development
 On E-Business Data Storage Management
2. (25%) Critical Customer Service
 For Special Weapon Attack Team (SWAT)
3. (10%) Global Training
 As Technical Sessions or Academic Lectures
4. (5%) Consultation

 For Venture Capital Investment in the Silicon Valley
2

Outline
 General Description

 Market Overview
 Industry Overview
 The IT
 The Future
3

General Description

4

What is RFID?
Reader

Tags

Radio Frequency Identification, a means of identifying a unique object or
person using a radio frequency transmission
RFID tags are affixed to objects and stored information may be written and
rewritten to an embedded chip in the tag
- Tags can be read remotely when they detect a radio frequency signal from a
reader over a range of distances
- Readers then either send tag information over the enterprise network to
back-end systems for processing or display it to the end user
-

5

RFID Tag technologies
 Components of a tag:
-

Chip
Antenna
Packaging

 Different types of RFID tags
-

Power source
 Passive tags
 Active tags
 Semi-active tags

-

Read/write capability
 Read Only
 Write Once/Read Many (WORM)
 Read/Write

6

RFID Reader technologies
 There are three basic choices for reader technology –
based on the job or type of work to be performed
Stationary
 Entrances

- portals
 Conveyors across
assembly lines
 Points of sale
 Overhead

7

Mobile
 Hand-held
 Wireless

or batch
 One-piece or two piece
tagging

PCMCIA
 Mobile

service agent

What are the advantages of RFID?

8

Barcode

RFID

Efficiency

Ability to read one tag at a time
(line of sight required)

Ability to read multiple tags
simultaneously
(no line of sight required)

Dependability

Labels easily damaged

Tags less susceptible to damage
Can be used in harsher environments

Data Capacity

Limited amount of data can be
assigned

Significantly higher data capacity to
capture detailed information about
product

Flexibility

Static information

Potential for read / write capability,
making tags reusable

What are the challenges?
1. Relatively high cost
2. Lack of standards
3. Occasional no-reads and mis-reads

4. Software integration hurdles
5. Requisite physical infrastructure
9

Where are we at?
 RFID is small enough, fast enough, and
cheap enough to do real work with today.
-

-

-

10

A great deal of innovation has brought us to the point
where the silicon core of an radio tag is now 0.4mm.
The antenna can be printed onto a product’s
packaging at time of manufacture.
Currently radio tags can be purchased for less that
$0.25 in quantity.

Examples of RFID tag products

Spider 2450 Mhz
tag from RFCode
Intellitag 915 Mhz
tags from Intermec
Technologies

Family of low-frequency tags from Texas Instruments

2450 Mhz Backscatter tag
from Alien Technologies

11

13.56 Mhz tag with largest
storage capacity (4KBytes) from
Hitachi Maxell

Smallest 13.56 Mhz EPC
tags from TagSys

Examples of RFID reader products?

1555 Handheld serial readers
from Intermec Technologies

902-928 Mhz serial stationary
reader from Matrics

12

915 Mhz Network stationary reader (with antenna) from Alien
Technologies

303.8 Mhz Mantis wireless LAN
reader from RFCode

S6410 Serial reader from Texas
Instruments

The Electronic Product Code (EPC)
 What is ePC
-

A product numbering scheme
Assign a number to each item

EPC™ - variable length product identification code

Header

Domain

Class

Instance

 EPC resides in an RFID tag
 Real-time information related to each object is stored and accessed
via the internet

 It is an open, standards-based system that facilitates collaboration
among partners in the value chain
-

13

Adopted across industries (Coca-Cola, Wal-Mart, Philip, UPS…)

The Electronic Product Code (EPC)
 How does it work?

14

Market Overview

15

Market trigger: Wal-Mart expands RFID mandate
to include all suppliers by 2006
RFID Journal: Wal-Mart Draws a Line in the Sand
 In June, Wal-Mart required its top 100 suppliers to have products on pallets employing
RFID chips and in cases with RFID chips beginning in January 2005
ramp-up in 2004 – starting with ~20 suppliers in Jan. ’04.
-Regional implementation roll-out – start with Texas region ( 3 DCs, ~150 stores)
-By January ’05 - ALL products flowing through Texas region for Top 100+
-DSD and DC, all impacted formats, including SAMS Club
-Pilot

 Wal-Mart has indicated it would start deploying Electronic Product Code (EPC) technology
in the United States and then quickly move to implement it in Europe, then the rest of the
world.
 In August, Wal-Mart announced it would require all suppliers to implement RFID systems
by 2006

Source: RFID Journal.
16

Market trigger: U.S. DoD will require suppliers to
use active and passive RFID technology by 2005
 DOD memo: “The DOD will be an early adopter of
innovative RFID technology that leverages the Electronic
Product Code (EPC) and compatible tags. Our policy will
require suppliers to put passive RFID tags on lowest
possible service part/case/pallet packing by January 2005.
We also plan to require RFID tags on key high-value items”
 The new policy expands active RFID tracking of all:
-sustainment

cargo
-unit movement cargo
-ammunition shipments
-pre-positioned materials and supplies.

Military Usages!

Source: RFID Journal.
17

What is RFID global market volume?
 Based on estimates from Venture
Development Corp., ABI, Yankee
Group, and AMR, IBM estimates
the RFID market compound
annual growth rate at
approximately 34%

 Recent market triggers such as
Wal-Mart, Tesco, U.S. Dept. of
Defence, Target decisions to
implement RFID systems are
expected to accelerate market
adoption
18

6000.00

5000.00

4000.00
US$ M

 IBM estimates total market to
grow from $2.2 billion in global
revenue in 2005 to more than
$5.3 billion by 2008

Worldwide RFID Market

Readers
Tags

3000.00

Hardware
Software
Services

2000.00

1000.00

0.00
2003

2004

2005

2006

2007

2008

Source: IBM estimates using inputs from Venture Development Corp., ABI
Yankee Group, AMR

RFID global demand in 2002
Transport
30%

Industrial
35%

Commercial
15%
Healthcare Retail
5%
5%

19

Government
10%

Market drivers
Market

Economic

Physical / Technical

Standards
Social / Political

20

Increasing end-user knowledge of RFID technology, its applications, and its advantages
Emerging and growing markets for different RFID applications across multiple industries
Demand driven by large retailer requirements, CPG and supply chain vendors’ investment
Industry systems integration and process expertise developing

Rapidly decreasing cost of RFID tags and readers
Technology is beginning to mature
Technical and physical interoperability, interference and data overload issues will be
overcome through 2004-2005
Chip and frequency standards are expected to evolve globally
Industry-wide standards for many applications leading to interoperability amongst different
manufacturers’ products, including hardware
Government requirements for cross-border trade
Regulatory mandates

Market Inhibitors
Market

Economic

Physical / Technical

Standards

Social / Political

21

Availability of skilled RFID experts
Over hyped value propositions, business cases, and timelines
Data ownership and security
RFID tags are still expensive compared to barcodes (approx. $0.25)
Implementation and back-end integration costs are very high
ROI may not be immediate
Country-specific idiosyncrasies in regards to spectrum bands
Tag and reader incompatibilities still exists between rival manufacturers
Read reliability still needs improvement.
RFID signals can be blocked in certain environments (e.g., liquids, metals)
Data loads produced by RFID systems could overload company systems
Lack of flexible and global standards
Class 1 Generation 2 tags not available until late 2004/early 2005; EPC and ISO
standards at odds until then
Cross-company data sharing model has not been defined.
End-user acceptance: Privacy, for example, remains a concern

Industry Overview

22

Some players in the global industry
Systems Management Domain
Tagged
Object
Domain
Philips
Intermec
Alien
Texas Insts
Avery Dennison
Printronix
Zebra
Matrics
Savi
SAMSys
Wherenet
Wavetrend
BlueSoft

Antenna &
Reader
Domain
Alien
AWID
Intermec
Matrics
Symbol
TagSYS
Savi
Texas Insts
Samsys
Wavetrend
FEIG
BlueSoft

Edge
Domain

Premises
Domain

Business
Process
Integration
Domain

IBM
OAT Systems
ConnectTerra

IBM
OAT Systems
ConnectTerra
Savi
Wherenet

IBM
OAT Systems
Savi
SAP

Enterprise &
Business
Application
Domain
IBM
SAP

Object Directory Domain
IBM

Security & Privacy Management

VeriSign

IBM

RFID System Integrators

IBM, Intel, IPI, Intellident

Hardware Providers

IBM

Infrastructure & Storage

IBM

Application Management & Strategic Outsourcing
23

IBM

IBM

Standardization efforts
 ISO 14443 – Proximity cards (smart wallet security)
 ISO 15693 – Vicinity cards (ID-only cards)
-

http://www.14443.org

 Global TAG (GTAG)  AutoID Inc.

 Auto-ID Center  AutoID Inc.
-

http://www.uc-council.org/autoid

 Ubiquitous ID Center (Japan)
-

http://uidcenter.com

 See the AutoID Inc. FAQ!!!
24

Which frequency should I use?
 High frequency (13.56 MHz)
-

-

Most governments have set
aside this range for high
frequency RFID
Suffers from short read ranges

 TI Laundry Tag
-

25

12 inch read range
50 tags per second

Which frequency should I use?
 “[UHF is] the only frequency band that provides the extended read range
needed to track goods in a supply chain setting”. RFID Journal, June 30, 2003
 Concentrate on UHF for supply chain applications in the future
-

USA and Canada
Europe
Japan

915 MHz
868 MHz (with a special license)
950-956 MHz (perhaps 902-928 MHz) Just announced!!!

 Much work is being done to achieve globally compatible frequencies in
the UHF band.
-

-

26

Active lobbying is in progress to encourage the EU to allow more power,
longer duty cycles, etc. (EAN is leading this effort)
Lobbying of Chinese and Japanese government, etc.
Future frequency agile tags and readers should operate on global basis
in UHF band.

Which frequency should I use?
 2.4 to 2.483 GHz (Ethernet/BlueTooth range)
No license required
- Lot’s of existing traffic in this range
- Batteries required
- Typical Read Range, Indoors ..........100 m (350 ft)
- Typical Read Range, Outdoors........300 m (1000 ft)
- Typical Battery Life ..........................7 years
-

 If the blink rate is set to once every 6 minutes

 WhereNet is a big proponent of this technology
27

Which frequency should I use?
An RF site survey should be considered to
determine which frequencies would operate best for
the product, operating environment and legal
environment.
Multiple readers may be required until all trading
partners harmonize their RFID products!!!

Metals and di-electric fluids pose problems and will
require physics expertise.
28

What different tag technologies exist?
 Read Only
-

e.g. Auto-ID Class 0 tag
Impractical for large manufacturing

 Write Once/Read Many (WORM)
-

e.g. Auto-ID Class 1 tag
Good balance of price/performance w/ data security

 Read/Write
-

29

e.g. Auto-ID Class 2 tag
Powerful, flexible
Potential security issues

What different tag technologies exist?
 Passive
-

No onboard power supply (battery)
Uses the power emitted by the reader – limited read range (6 meters)
Long lifetime (no moving parts, etc.)

 Active
-

Uses an onboard battery
Battery limits the tag’s lifetime
Did product disappear or did its battery die?

 Semi-Active (Semi-Passive)
30

Like an Active tag but battery inactive until in presence of a reader
Sleep mode helps the battery last much longer

What are the top 10 facts about the
RFID market and industry?
1.
2.

Right now, the market is more attractive for customers than suppliers.
RFID is a technology solution in search of a problem, and there is also
an industry problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater
volume comes much lower costs … and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident… and often
painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application… but the killer app may
ultimately reside in the homeland security market.
9. Profitable niches do exist for suppliers.
10. Customers will continue to benefit from the intelligent application of
RFID technology.
31

What are the key trends in the RFID industry?
1.
2.
3.
4.
5.
6.
7.
8.

The industry is fragmented but showing some signs of consolidation
The barriers to entry are gradually increasing, but they are still low.
Competitor rivalry is high in some segments.
In general, customers have significant bargaining power over suppliers.
RFID is a technology solution in search of a problem.
There is also an industry problem in search of a solution.
Price pressure is severe… and increasing.
Over the past three years, segments of the industry have suffered from
occasional overcapacity and oversupply.
9. Too-few distribution channels continue as a major impediment to growth.
10. There is growing interest in RFID for homeland security applications.

32

The IT

33

Linking Two Worlds
Middleware Server

Edge Server

Information Technology

Physics

RFID links the world of Physics to
the world of Information Technology
in order to allow computers to sense
the real world.

Reader

The Physics challenges and
IT challenges of building RFID
Systems are about equal.
Antennas

We should focus on the IT challenges
and partner with others to overcome
the physics challenges
Tags on Product

34

Sample RFID Network
Significant Product
Movement Events

Middleware Server
Dedicated Ethernet, 802.11

Edge Server Network

Multiple Edge Servers
per Middleware Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Serial, Dedicated Ethernet, 802.11

Multiple Readers
per Edge Server
Reader Network

Item EPC, Antenna ID

Coax cable

Multiple Antennas
per Reader
Antenna Network

Item EPC

Multiple Products
per Antenna
35

RFID vs. Auto-ID
 Auto-ID focused on cheap, interoperable tags and readers
 Very small read only tags with printed antennas
 Very inexpensive (dumb) readers
 The tag should only contain a unique identifier which when used
with a global system for fast database lookup, provides secure data
on the object.
 Interoperable multi-frequency tags and multi frequency readers
 Focus on IT issues
 Data capture at a massive scale
 Leaving raw data close to readers
 Quickly turning data into actionable information
 Distributed decision making
 Enterprise integration
36

Definition of the IBM solution
 “Monitor, Decide, Take Action”
 Monitor (focus: cheap)
 Massive data acquisition at the edge of the network (think Wal-Mart)
 Low cost (Linux, OSGi) servers just upstream of the readers
 Decide (focus: distributed)
 Use rules engines and mobile agents to analyze
 Object characteristics
 Object location
 Object history
 Information from other enterprise systems
 Take Action (focus: flexible integration)
 Notify users via actuators (warning lights, security gates, etc.)
 Send events to Enterprise Applications via Integration Server
 Send transactions to trading partners (EDI, ebXML, etc)
37

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
38

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

Monitor

PML Service

Middleware Server Layer

Edge Server Layer

RFID Physics
39

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

IBM Data Synch

UCCnet
(item synchronization)

AS1 EDI
transactions
ebXML
transactions
Product Catalog
Existing Enterprise Applications

Decide
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
40

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Trading Partners
(Advanced Ship Notices)

SAP

Retek

etc.

AS1 EDI
transactions

IBM Data Synch

UCCnet
(item synchronization)

Take Action

ebXML
transactions
Product Catalog
Existing Enterprise Applications
Integration Server
Auto-ID Services

PML Service
Middleware Server Layer

Edge Server Layer

RFID Physics
41

Data Capture
Data Smoothing
Data Logging
Immediate Response Tasks

ONS Server

Item EPC, Antenna ID,
Reader EPC, Timestamp

Management Service

Directory Service

Console for monitoring
health of all Servers,
Readers, and Antennas

Directory of all
Edge Servers and
Assigned Tasks

Middleware Server Layer

Edge Servers monitor Readers
Edge Server Layer

RFID Physics
42

Application Integration Service

Connections to
Enterprise Application
and Trading Partners

IBM RFID High-Level Architecture
Systems Management Domain
Antenna and
Reader Domain

Edge Domain

Premises Domain

Enterprise & Business
Application Domain
Business Process
Integration Domain

RFID Accelerators

Dock
Door
Reader

RFID
Label / Tag
Printers
Visual
Indicators

RFID
Controller

WebSphere
Embedded
Software
w/ IBM RFID
enablement

Switches
and
Sensors
Note: Readers, printers, visual indicators,
switches/sensors to be provided by third party

43

Portal
Server

DB2
Data Base

Conveyor
Belt
Reader
Handheld /
Portable
Reader

Object Directory Domain
Product
Information
Services
EPC, WPC

IBM SWG Accelerators

RFID
Premises
Server

Business
Events
MQ

RFID
Integration
Server

XML
or

MQ

ERP
WMS
SCM

 WAS J2EE platform
 MQ Reliable Messaging
 DB2
 IBM RFID Software

 WBI Publish/Subscribe
XML
Message Broker
MQ
 WBI Integration
Connectors
 Tivoli Remote Management

IT: Big rules for success
It is essential that:
• Always architect for massive scale (Wal-Mart store)
• Devices must be
• Plug and work
• Authenticated

• Remotely manageable
• Remotely upgradeable

• Users must be
• Authenticated around the globe

• Authenticated across trading partners

44

The Future

45

What is the market opportunities for IBM across brands?
 Hardware
 Inexpensive Linux platforms for initial edge servers
 Massive redundant storage required for track and trace
 Large server opportunities for Auto-ID Middleware
 Enterprise Application Integration
 Automatic transactions
 Software
 Message Queue (message routing between edge and data center)
 DB2 (massive data archiving for track and trace, data management)
 WebSphere (Enterprise Application Integration and automatic B2B)
 Tivoli (remote monitoring, configuration, update of readers)
 Services
 Business Cases
 ITS Deployment Consulting
 Enterprise and B2B Integration Services
 Device and User Security Services
46

Advanced Infrastructure: U.S. Forest Service
Field truck

- Adhoc Network to Fight Forest Fires
Card
IR satellite
imagery
of fire

USFS

Truck
Firefighting
field team

Graphic overlay
of fire line
30
mph

Wind
direction/
speed
indicator

Firefighters
Trailer
User
Key Alliance Partner:
Command center trailer

47

The future is pervasive…

 Complex network of sensors monitor road conditions
including fog, road moisture
 Speed limits and road warnings are automatically set
 Condition
information sent directly to vehicles
48

The future is pervasive…
 Sensors on the bus and in the roadway report a
potential accident
 Sensor data and real time images are transferred to
the E911 dispatch center
 Traffic signal control is modified to begin routing
around the incident

49

The future is pervasive…

 Predefined automated incident response plan for
public transit traffic incidents is activated
 Nearest police, fire and emergency medical assets
are activated
 Traffic signal control facilitates arrival of first
50
responders

The future is pervasive…

 Transit dispatch uses fixed cameras, sensors and on
scene reports to determine that the bus is inoperative
 A substitute bus is dispatched
 System wide schedule information is updated at bus
stops and to rider accessible information systems
 A connecting light rail train is held five minutes to
accommodate
the delay
51

Why IBM?
Know-how
Business Consulting Services,
Systems Integrations, High
Volume systems, High
Availability, Telecom

Hardware
& Software
WebSphere, WESM, WEA, wBI, MQ
Series, DB2, xSeries, pSeries,

storage, …

Infrastructure on
demand
eBusiness on Demand,
hosting, managed storage,
and network management

on demand
Open Standards
3GPP, MMS, SMS, WAP,
SMPP, HTTP, SOAP, Parlay,
SIP

Partnerships
Technology
WDE and SPDE
architecture, research,
patent leader, test labs

52

Air2Web, QPASS, Openwave,
Nokia, Real Networks, Sun,
Cisco, Veritas

What the Industry is Saying ?
“In an environment characterized by
uncertainty and skepticism, IBM remains
committed to improving the way in which
people live. IBM is at the forefront of initiatives
that have the potential to shape the commuting
and communications landscape for the next
decade.”
Meg Follmer, IDC

53

www.ibm.com/solutions/wireless

54

[email protected]
55