1. RFID Radio Frequency IDentification By Özcan Tunalılar 27 th March 2008

2. What is RFID? ► Latest phase of the miniaturization of computers (mini-processors) ► Have two types of units: RFID transponders (tag) and RFID readers ► Transponder does NOT need any additional battery ► Limited amount of processing and storage capacity ► Yet, can be effected by metal/water

3. Types of RFID (Battery-based) ► Passive  Activated when reader is near (10cm-3m)  Latest (unveiled): 0.04mm- 0.04mm ► Semi-passive  more distance sensibility  better battery life  both act like active and passive ► Active  has its own power supply  most distance sensibility (up to 500m)

4. What are the ABILITIES? ► Tracking (Location) ► Identification (Label) ► Keep Track of Data (Information)

5. What can RFID be used for? ► supply chain management ► automated payment ► physical access control ► all kinds of personal and consumer goods ► their pets and livestock

6. How does it work?

7. Cost Analysis (Pacific Cycle) ► Initiation by Wal-Mart (supplier for Wal- Mart) ► Logistics of supply-chain (bikes especially) ► Ability to track where the product is and inventory condition ► Many firms and outsourcing included (Like Zebra, Symbol, SAP and Peak Tech.)  Hardware (tags, readers)  Software (connected to database system)

8. Cost Analysis (Pacific Cycle) cont.d ► Zebra Solutions (zebra.com)  needs: “Tags, printer/encoders, readers, middleware, and professional services”  additional needs: “investment in back-office, manufacturing, or WMS systems to use RFID data” ► May take up to $9 million on RFID  “Depending on the size of the firm’s distribution network and volume.” ► “Worth it” (Very optimistic view)

9. Views on Cost (R.O.I.) ► Industryweek magazine “Experience proves that typical MHE (Material Handling Equipment) improvement projects show a positive ROI of between one and three years.” ► Forbes magazine “Unfortunately for manufacturer and distributors selling to large retailers, RFID has a much lower return on investment for them than for their retail customers “

10. Views on Cost (R.O.I.) ► AMR Research Group (Boston) “Use of such technology based on pallet and case tagging will not generate revenue to add appreciably to the bottom line. This means that with today's technology--and today's costs--RFID is not economically justified for retailers.“ ► Sara Lee Corp. CIO George Chappelle (another Wal-Mart supplier) “Radio Frequency identification (RFID) supply chain technology isn't mature enough to deliver benefits to consumer product manufacturers.”  Cost issue  Training  Eventually tech. will make it available

11. Why Worries in Public? ► Privacy ► Security

12. Why Worries: Privacy ► “a society in which an individual’s privacy is compromised at every turn by the remotely readable objects they carry” ► Identity theft (in Legal documents like Driver’s License and IDs) ► Legislation against RFID, not YET  Permanently disabling the tag  More security both on backoffice and readers ► All these means COST for the developing industry

13. Why Worries: “Spychips” ► Every object can be recorded, stored and reaccessed by “someone who has the ability to do so” ► BIG BROTHER (1984 of George Orwell)  Not the companies but the state can watch over you  Ease of discrimination and force on district groups of people ► Information about you: What you buy, where you buy and maybe, why you buy ► FINAL STAGE: HUMAN CHIPPING  implantable RFID chip

14. Why Worries: Security ► Undetectable  As a bearer, you would NOT know ► Readers are getting cheaper  Anyone would be able to detect who is carrying what ► The ease of hacking operations  Stealing information of tags  Changing information of tags***  Tracking against will of the bearer ► If government’s use this technology  ID and Passport theft will be a major issue

15. What to do? ► Investment  On development (for businesses)  On security demand (for public) ► Detailed and reasonable legislation

16. Thank You for Your Patience