Chapter 11. Emerging Trends in RFID

Technological Advancements 176

New and Improved Tags 177

Architecture for the New Network 178

Falling RFID Tag Price 180

Business Process Innovations 181

Item-Level Tagging 181

Third-Party Logistics Management 182

Real-Time Inventory Management 182

Business Intelligence 183

IT Outsourcing 183

Real-Time Data Sharing for Total Supply Chain Integration 183

Evolving Standards and Legislation 184

Industry Standards 184

Government Regulations and Mandates 184

Privacy Related Regulations 185

Consumer Application Innovations 185

Summary 186

Five Questions This Chapter Will Answer

• What kind of advances in RFID tag design are expected?

• Are there any emerging computer hardware or software advancements that will help the deployment of RFID applications?

• Is item-level tagging a hype or a reality?

• What are the important catalysts for the widespread adoption of RFID?

• What does subcutaneous tagging have to do with RFID adoption in the enterprise?

The etymology of the word trend denotes both movement in a general direction as well as roundabout twists and turns. Early potters could not possibly have predicted the various turns the wheel would take during the 8,500 years after it was first invented. Similarly, it is unlikely that Michael Faraday could have imagined any of today's RFID applications when he discovered electromagnetic induction.

Technology trends, in particular, are not only shaped by technological invention and advancements but by economic, social, and political factors. These add a new dimension of complexity to predicting the ultimate disposition and acceptance of trends.

Keeping all these complexities in mind, we have identified the top emerging trends associated with RFID that are expected to drive its ubiquitous adoption. These trends fall into the following categories: Technological Advancements, Business Process Innovations, Evolving Standards and Legislation, and Consumer Application Innovations.

In this chapter, we use these categories as anchor to do the following:

• Take stock of where RFID technology stands today

• Discuss the recent innovations around RFID

• Examine key factors that will influence its evolution