In this section, we use the drivers mentioned thus far to characterize selected applications in terms of cost-benefit. Because some of the costs vary based on specific situations, we have provided relative costs of components as opposed to absolute costs.
As already mentioned, a cost-benefit analysis of an RFID deployment depends on several factors. Because the importance of these factors depends on the specific application being considered, it is not possible to provide a simple cost-benefit formula that is universally applicable. Instead, we take a sample of RFID applications from Chapter 1, "A Better Way of Doing Things," and discuss which cost drivers are critical for them based on their inherent characteristics. You can utilize this data in two ways. In some cases, your application may be exactly what is described in here. In that case, you can use this characterization as a guide to further build cost-benefit scenarios. In the case where your application is different from what is being described here, you can find the closest match and modify it to build cost-benefit scenarios. In addition, you can use the illustrated example provided in the Smart & Secure Tradelanes case study (Appendix A) as a guide to build a cost-benefit scenario.
Table 7.1. Cost-Benefit Characterization of Selected Applications
Key Benefit: Security and Authentication |
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Application | Characteristics | Cost Drivers | Comments |
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Electronic Article Surveillance | Prevents shoplifting through inexpensive 1-bit tags Closed loop system that doesn't interact with other systems Low or High Frequency tags with range < 3 ft
| Primary ($$): Installation, 1-bit tags Secondary ($): Tags, Readers, Training
| |
Document Authentication | Establishes authenticity of a document through an embedded RFID chip Special tags embedded in the paper Can use read-only or read-write tags
| Primary ($$): Tagged paper, Integration with other systems to establish authenticity Business Process Secondary ($): Readers, Training, Installation
| |
Access Control | Tags embedded in badges or key-chains can provide access to restricted facilities Closed loop system that may interact with the directory infrastructure of the enterprise to provision and revoke access on the fly Low frequency tags with range < 6 inches
| Primary ($$): Tags and readers, integration of tag data with back-end directory infrastructure Secondary ($$): Readers, maintenance, installation
| In widespread deployment now Smart tags that can also store other keys and passwords, and can act as multiple access device are gaining popularity |
Electronic Drug Pedigree | Prevent proliferation of counterfeit drugs by keeping a record of a drug's pedigree as it moves through supply chain Open loop system that requires some type of central repository to store drug pedigree information Ultra High or Microwave frequency passive tags with range > 3 feet
| Primary ($$): Tags, Integration with central repository, Training and Process Re-engineering Secondary ($$): Installation of tags on cases and at item level
| |
Key Benefit: Safety |
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Application | Characteristics | Cost Drivers | Comments |
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People Monitoring | Help locate missing or lost kids in amusement parks Help locate and track whereabouts of the elderly in senior care facilities Active or semi active tags more likely, passive UHF tags in some applications
| | |
Patient Care | | Primary ($$): Integration, Maintenance, Process Reengineering Secondary ($): Tags, Readers
| Mid term (12-36 months) timeframe for general deployment Requires technology maturity, and patient education
|
Environment Sensing and Monitoring | Monitor environmental conditions such as temperature for perishable items Identify tampering with items such as food, drugs Active or passive tags with sensory capabilities
| | Mid term (12-36 months) timeframe for general deployment Requires technology maturity, supplier acceptance and process re-engineering |
Key Benefit: Convenience |
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Application | Characteristics | Cost Drivers | Comments |
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Crowd Control | Provide means to process guests / visitors faster at concerts or night clubs HF (High Frequency) tags, injectable tags in some cases Closed loop system
| | |
Payment | RFID based smart cards can act as e-wallets, allowing consumers to pay using the card HF (High Frequency) tags used in this closed loop system
| | |
Key Benefit: Process Efficiency |
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Application | Characteristics | Cost Drivers | Comments |
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Industrial Automation | | | |
Track and Trace / Supply Chain Integration | Likely to be the most prevalent use of RFID in supply chain Used in functions such as bar code replacement, compliance with mandates, supply chain visibility Use of passive UHF tags in most cases, with range > 3 feet Primary application of EPC defined standards
| Primary ($$): Tags, Integration, Installation, Process Re-engineering Secondary ($): Maintenance
| Track and Trace: Near term (< 12 months) timeframe for general deployment due to various mandates End-to-end Supply Chain Integration can take 2-5 years Tag pricing and read accuracy key performance factors affecting wide-spread rollout Open loop system that interacts with various business applications |