| By now, you have identified the problem and a solution. The solution has even been tested as a proof of concept and the lessons learned from the exercise have been incorporated in the project plan. In this phase, the actual solution needs to be built and deployed. Proper execution of the plan developed earlier is extremely critical here. Roll-out of immature solutions without proper transition plans and follow-through can lead to system-wide failures. On the other hand, lack of leadership and strong execution skills can lead to a very slow roll-out, diminishing benefits and adding uncertainty throughout the enterprise.  Key factors to consider in this phase are as follows: Sourcing and Procurement: Proper attention should be paid to sourcing and procurement of components to achieve steady supply and best prices. Because RFID deployments are expected to grow rapidly over the next several years, temporary shortages of tags may occur. To avoid getting hurt by such shortages, use the planning process as well as the pilot lessons to create as accurate a forecast of component needs as possible, so the orders can be placed in advance. Note that tag manufacturers are adding extra capacity, so the tag supply is not likely to be a constraint in the long run. Solution Build-Out: It is important to make sure that the deployment teams have the right resources, authority, and autonomy. The lessons learned from the pilot should be heavily leveraged. Project tracking should focus on deliverables as opposed to tasks. At pre-defined milestones, subject matter experts, end users, and management sponsors should perform project reviews to make sure that the solution meets the project guidelines and end-user requirements, as well as fits well with the strategic direction of the company. The U.S. Department of Defense (DoD), for example, had to ship 40,000 containers during the first Gulf War. Many of these contained redundant supplies due to the DoD's inability to locate the right supplies from a sea of containers. After the completion of the war, the DoD tested and found the RFID solution to meet its need of providing improved asset visibility. It has embarked on a phased solution build-out to deploy RFID in its operations. This has resulted in the creation of a network of RFID sensors (at the cost of $250M) that tracks more than 300,000 shipments per year using 1,300+ read/write stations in 800+ locations. Such massive solution build-out rests on the foundation of the original pilot carried out many years back, and other pilots carried out subsequently. Solution Testing: Testing should be performed at unit level as well as system level. Unit- or module-level testing is critical for testing architectural components. System-level testing is useful for testing usability and overall performance of the system. Teams consisting of end users and the project team should be involved in testing. For example, Wal-Mart tested its capability to receive RFID-equipped shipments with a handful of its top 100 suppliers for several months (system-level testing). As a result, several problems were identified, including trouble reading tagged objects containing liquid. Consequently, Wal-Mart relaxed its target requirement from 100% of the shipments tagged to approximately 65%. Imagine system-wide detection failures and delays in the Wal-Mart supply chain had it gone forward with its 100% compliance policy. Many pallets containing liquid-filled objects such as bottles of shampoo or detergent would not be read correctly, leading to delays across all of Wal-Mart's supply chain. Stakeholder Communication: Although the key stakeholders are usually involved in the project from its inception, the broader roll-out increases the number and presumably the types of stakeholders. Providing them with clear direction on what to expect at what point in time as well as clear transition and support plans is crucial. Using the original stakeholders as ambassadors in the organization can work well. When the DoD outlined its policy for use of RFID, it held several summits that its suppliers (stakeholders) could attend to find out more about the policy. In the summit, it invited several other suppliers who had long-standing RFID deployment projects to come as subject matter experts and share their experiences. Such a move can mean the difference between suppliers acting as partners with shared common goals versus acting as disinterested parties, or worse, adversaries. This topic is further explained in Chapter 6. Training: Enterprise-wide training is another critical factor to consider. Even the top management directives are sometimes interpreted by different employees in different ways. A training plan aimed at providing the right type of information to the right group of people can be critical in avoiding some of the variations in interpretation. The level of training required varies based on an employee's involvement in the project. For employees who are not directly related to the project, a short Web-based course or an instructional pamphlet should be sufficient. On the other hand, the employees directly responsible for execution should take extensive training with emphasis on troubleshooting and quality-control. In some cases, such as RFID deployment in supply chain, the training should even be rolled out to suppliers. Business and Technology Infrastructure: As mentioned earlier, IT alignment means that the right business and technology infrastructure is set up to execute a project. Testing should include how well the infrastructure can leverage the data provided by RFID systems and forward it on to various decision-making systems or individual reports for further processing and decision-making. When the DoD completed the build-out of its RFID sensor network (see Operation Iraqi Freedom / Operation Enduring Freedom (OEF/OIF) case study in Appendix A) and aligned its military (business) practices to leverage it, the results in terms of increased efficiency were impressive during the second Gulf War. Although the DoD deployed 30% fewer troops in the second war, it used 90% fewer shipping containers due to the improved supply chain visibility enabled by RFID. Phased Roll-Out Based on Milestones: As with any complex project, phased roll-out is critical. Things to watch are transition plans and implementation of lessons learned from previous phases into subsequent ones. Mid-course correction might be needed. As described earlier, teams with proper authority and autonomy are critical to achieve this. Marketing: The best IT deployment can fall short of its target if it is not leveraged in other functions of an organization. If the project was designed to improve a company's competitive position, the results and benefits of the project should be integrated into the company's marketing plan to gain customer mindshare and generate demand. The luxury carmaker Lexus does this effectively. Some Lexus cars come equipped with RFID-based lock and keys. As a result, a Lexus can "recognize" its owners. The company has leveraged this feature into its advertising. It positions this differentiation to further enhance the customer perception of Lexus as an innovator.
Typical questions to ask in this phase include the following: Do you have the right sourcing strategy to ensure adequate supplies at the right price? Is the current set of vendors helping you with investment protection? Do you have resources, including infrastructure, needed for an enterprise-wide solution build-out? Are milestones for the roll-out clearly defined and communicated? Have the solution testing and acceptance criteria been defined? Are the relevant peoplefor example, users and sustaining teambeing trained? How is quality control ensured? Is the business benefit of this solution being integrated into marketing wherever appropriate?
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Avoid the following situations: Inadequate focus on sourcing leading to short supply of parts or reengineering of solution Reliance on a favorite vendor that has little or no expertise with RFID Failed roll-out due to inadequate infrastructure Ad-hoc training of employees Stealth deployment of solution (no one knows about it or its benefits)
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The output of this stage is a fully deployed solution that has been rolled out to the organization and marketed aggressively according to the plan. Proper stakeholder communications and training should be completed at this point. |
