2. RFID Technology July, 2004 David Wertheimer Product Manager WMS & MSCA Applications

3. Can I use RFID to locate an object anywhere, anytime …  RFID is most cost effective for event-based tracking through a limited number of portals MethodImplications Uses GPS: Tag on object broadcasts is position Low infrastructure costs. High tag costs. Transportation RTLS: Triangulate position of tag using special tags and reader hardware. Med/high infrastructure cost to flood entire area with RF field. Medium cost tags. Asset Tracking RFID: Track movements in and out of zones. Location is assumed to be last zone. High infrastructure costs (at least one reader per zone). Low cost tags. Goods in Supply Chain

4. RFID Tags & Systems

5. Antenna IC (0.5mm) Substrate Connection RFID Basics – A Passive Tag

6.  RFID Tag contains RFID chip, power source (inductive or battery) and antennae.  Sends back identifier upon power up  Reader communicates with the tags in range to read all tags identifiers and memory (payload).  Antenna receives power and analog signal from reader  Converts radio signal to and from analog electrical signals  Edge Server collects observations and drives readers.  Forwards events to database tier for distribution  Chip holds the memory that stores the actual identifier  Implements the wireless protocol  Application receives transient messages and has to react immediately.  Event Queue Most implementations uses a simple transient queue to communicate with applications  Database serves as a “better bus”.  In addition, data archiving and aggregation now can be done in an application neutral level RFID Basics – The System

7. Oracle RFID Integrated Strategy Maximize RFID ROI through Top-to-Bottom Integration Application Server Data Base and Tools Applications Deliver a robust, hardware agnostic RFID platform which elevates the application development interface to standard technology and the processing of true business events Leverage data base extensibility, scalability and event management capabilities to support the data and transaction volumes associated with this technology Leverage the above technology to deliver functionality with realistic ROI and to create platform for future expansion This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

8. Different Tags for Different Needs Passive vs. Active Active Passive Power SourceInternal battery on tagPowered by radio waves LifeLimited by batteryUnlimited Operating TempMore limitedWide range (-40°-185°F) RangeLongerShorter Memory CapacityLargerSmaller Feature SetAdditional sensors, alarms, GPSIdentity, basic data Cost$10-$10015¢ - $1s  Different use cases – Active can tracking large assets and additional information about asset – Passive can be for single use or open-loop supply chain  Some use cases require both – Active tag & passive reader on container, passive tag on items in container – “Active backscatter” combine technologies from both

9. LF 30-300KHz Range: 1cm – 1.5m HF 3-30MHz Range: 1cm – 0.7m VHF 30-300MHz Range: 1 – 3m UHF 300-1000MHz Range: 1 – 3m Microwave 1GHz and up Range: 1 – 10m Considerations – Directionality – Anti-collision  Identifying multiple tags at once – Data capacity – Data rate – Reflection & interference – Regulations & standards  Reader-to-tag  Tag data  Supply chain partners  International availability – Tag cost Different Tags for Different Needs Variety of Frequency Ranges

10. Different Tags for Different Needs Sample uses for some of the frequencies  LF: 125-134kHz – Cross borders frequency – Relatively good penetration – Slow read speed, larger antennas ($) – Minimal range – Sample use case: Cattle tracking  HF: 13.56 MHz – Penetrates water and tissue – Simpler antenna (lower cost) – Range is ~ 0.7m – Sample use case: Smart Card Access  UHF: 865-928 Mhz – Effective around metals (but not water/tissue) – Best frequency for >1m range – High data rate – Sample use case: EPC Labels  Microwave: 2.4Ghz – Small tag size (1”x0.25”) – High data rate – Easier to be affected by noise – Sample use case: Asset location with 802.11 network

11. Radio Frequency Spectrums US & Canada 125 kHz 13.56 MHz 915 MHz 2.4 GHz Australia 125 kHz 13.56 MHz 918-926 MHz South Africa 125 kHz 13.56 MHz 913-915 MHz Europe 125 kHz 13.56 MHz 865-868 MHz 2.4 GHz Korea 125 kHz 13.56 MHz 910-914 MHz Japan 125 kHz 13.56 MHz 850-856 MHz

12. Standards Bodies & International Issues Sensitivity / Response Frequency 915MHz 868MHz  EPCglobal & ISO defining standards – ISO & EPCglobal both define air-to-reader interface; convergence expected – EPCglobal defines tag data standard, EPC network, ALE – Oracle is a member of EPCglobal  EPCglobal focusing on UHF tags – Currently different frequencies in different regions – EPCglobal working with governments to set aside band for RFID – In meantime, use tags that can respond to multiple frequencies

13. Range 915MHz Intermec Container Tag Tag Range Depends on Physics PlasticMetal Metal w/ 1/8” Spacer Glass Cardboard Free Space Plywood 3’ 6’ 9’ 12’ Source: Intermec Tag Selection Guide, 2003  Other Factors – Directionality – Antenna location – Liquids – Direct contact with other tags – Spacer size (for metals) – Antenna tuning – Multiple antennas – Tag packaging – Tag mounting location – Time in field

14. Tag Selection: No “best” tag But Oracle is hardware & tag agnostic This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.  Many issues going into tag selection – Be aware of these issues and educated about the factors to consider  Avoid recommending specific hardware – Tag frequency, vendor selection, tag placement, antenna positioning  Leave to system integrators & experts in the field – Pragmatyxs, Intermec, R4, …  Hardware selection is irrelevant to Oracle – Oracle has the infrastructure to integrate to any reader hardware – Applications do not care about the tag frequency – It’s about the data management

15. Myth of the 1 ¢ tag Non-trivial cost – but business need can justify  Tag cost depends on variety of factors – Frequency & packaging – Active vs. passive – Memory capacity & additional sensors  Cost in excess of $100 for sophisticated active tag  Passive tags used for tagging pallets (UHF, label) – Single roll of labels: 60¢ – In volume: estimated 35¢  Cost components – Silicon chip, copper antenna, conversion

16. Tag Accuracy Incredibly accurate – when scanned & working This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.  Manufacturing quality problems on current UHF tags – As many as 10-30% of tags are DOA – Some – but not all – problems caught before tag embedded – Label printers catch these and void the label – Label providers guarantee a certain number of good tags per roll  Actual scanning of RFID tag highly accurate – Perhaps on par with barcodes (one error in 300,000 characters)  Need to ensure that the tag was scanned – Easy to ensure one tag per pallet read by using proximity / other sensors – If 1000 tags/pallet and 99.99% accuracy, 10% of pallets fail – Acceptable “threshold” at which assume pallet is complete

17. Current focus is on ID-only tags (96 bit) so … Can I store all the data I want on an RFID tag and read it anytime … Tag cost and read time increases with data size so … The ID must be a standard key of a business object and … Used to access the data of the object … Which may be anywhere in the network so … We need a central “name service” to find the data and … A standard format for returning the data Class 1 Tags, EPC, PML/XML, ONS

18. What about Data on the Tags? ID-Only vs. Data Store Tags ID-Only Tags  “Hot”  Cheaper, Faster  Standardized (e.g. Class 1)  Requires network access (inter-, or intra-enterprise)  May need ONS-type service to flexibly share information  Open-Loop Supply Chain – Mandates from Wal-Mart, DoD and others … Data Store Tags  More history  Longer Reads, More $$  Less focus on standards  Allows disconnected operations  Read-Write will need special controls and capabilities  Closed-Loop applications – Service, Assets, Internal Logistics, …

19. Types of Readers Fixed vs. Mobile  Different use cases demand different reader types – Process pallet shipment – Packing verification – Verify correct pallet loaded to fork lift  Fixed readers – Typically support several antennas per reader – Interface via serial or ethernet – “Smart shelving” is a fixed reader with multiplexed antennas  Mobile readers – Handheld device with built in reader – Reader often has adjustable range because user cannot trust line of site – Embedded into shopping carts or forktrucks

20. Programming Tags  Read-only vs. read/write tags – Read-only pre-branded with identifier & payload – Read-only cheaper but more difficult for some business processes – One time programmable can be written once and in short range – Read/write are flexible field writable tags  Tag writing done by RFID reader – Mobile reader on hand-held for field service / field updateable tags – Fixed reader at dock door as material is shipped out – Embedded reader in printer as label or other format produced

21. EPC Network & Standards

22. RFID Concept Map “The Internet of Things” Oracle Confidential: This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. RFID ConceptPurpose Internet Analog EPC Electronic Product Code Replacement to UCC / GTIN numbering scheme for identifying objects. EPC codes (stored as the ID on the RFID tag) will be used as generic handles to any Application Object. URL ONS Object Name Service Lookup service to resolve RFID/EPC number to the location of its associated object. Requires X-Reference capabilities (internal lookup) and LDAP- like services (external lookup). DNS EPC IS EPC Information Services Represent and publish physical objects using standardized XML-based language. HTML / XML Savant RFID Controller RFID controller, to filter events, store and forward data, and to publish events. Application Server

23. This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. User or application requesting information about EPC ONS VeriSign Tell me where to go to find information on where this EPC has been seen EPC Discovery Services Multiple Providers Point me to everyone who has seen the EPC in question EPC Information Services Multiple Providers Deliver details about that EPC user qualified to see, in a common language Manufacturer Retailer Considerations – Security & access rights  “EPC Trust Services” – Information sharing concerns – Existing sharing schemes – Cost / cost distribution – Other alternatives EPC Network “The Internet of Things”

24. Assign by item & org. Managing EPC Assignment Automating Unique Assignment Store on your “Organization” record. Also store next available Object Class number. Assign next number from above, then store that number on your Item record. Also on the Item record, store the next available Serial.  Scheme to map existing numbering standards to EPC  GTIN, SSCC, GLN, GRAI, GIAI, …  Unlike those schemes, however, EPC meant to be parsed  Unlike SSCC, EPC intended to be parsed  Requires flexible enablement in your Item Master (PLM) system  Used for filtering & facilitates routing with ONS This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

25. EPC Tag Standards  Classes – Current EPCglobal focus – Class 0  Read-only passive tags – Class 0+ (non-standard)  Read/write passive tags – Class I & C1 - Generation 2  Read/write passive tags  Objective – Cross-manufacturer communication between tags & readers  Reality – Interoperability is problematic – Multi-protocol readers / writers help alleviate problem – Lawsuit between Intermec & Matrics – Class II  Writeable passive tags with additional functionality – Class III  Semi-passive, but still only reader initiated – Class IV  Active tags, potentially support peer-to-peer – Class V  Essentially readers themselves, can communicate with other tags of any class

26.  EPCglobal http://www.epcglobalinc.org – Previously Auto-ID Center, now chapter of EAN.UCC  ISO – ISO 14443 - Proximity cards (smart wallet security) – ISO 15693 – Vicinity cards (ID-cards only) – 18000-1 to 7 – Passive tag protocol  Ubiquitous ID Center (Japan) http://www.uidcenter.com Standards EPC Tag Standards (i.e.: Class I, II, …) EPC Tag ProtocolEPC Reader Management EPC Reader Protocol EPC Encoding Application Level Events

27. What is “Savant”? This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.  EPCglobal Savant – Terminology replaced by Application Level Event / ALE – Savant still used to describe the middleware that interacts with readers – Distributed software to smooth & filter data from readers – Defines communication protocol between middleware & applications – Savant specification not yet finalized by EPCglobal  Oracle Edge Server is a Savant or ALE – The CAPTURE in “Capture, Analyze, Access, Monitor, and Respond” – Configurable filters can perform all filtering required of a Savant – Can produce data in all formats required of a Savant – Can do all that a Savant can do and more  Oracle committed to supporting standards

28. Managing Privacy & Security Personal Privacy and Commercial Security Cost of Adoption Point of Sale Retail Distribution Manufacturing Commercial Security Personal Privacy  Broad adoption at POS is in the future – Need standards, education and shared value proposition – Service has good value proposition, but also privacy concerns  Important current concern is Commercial Security – Syndication - Who has access to which data?  Becomes most critical with open-loop systems Item / Shelf Pallet / Dock Doors

29. Oracle Committed to Supporting Standards This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.  EPC Generation – Compliance Assistance Package – Future: Native support for EPC generation & parsing in DB – Future: Compliance support in Oracle Warehouse Management  EPC Network – Complex distributed DB issues only a company like Oracle can address – Intend to support as customers demand, issues resolved & benefit clear  Other information sharing systems as well – ASNs / EDI supported by Oracle – Other peer-to-peer, rather than hierarchical, systems also emerging

30. A Q & Q U E S T I O N S A N S W E R S