We have all heard and witnessed that RFID has not exploded onto the scene like initially predicted.  It has seen steady growth but no big breakthroughs...why?

We need to look back a couple of years and look at the market in 2003.  Proprietary RFID equipment (RFID Readers and RFID Tags) were being sold in small quantities but obviously no company was going to invest a large amount of money in proprietary RFID hardware - result: no market movement

In 2005 the EPCglobal Gen 2 standard was passed. Finally the RFID market would explode...wrong. It took most of this year to get the Gen 2 compliant RFID equipment into the hands of integrators and early adapters.  Intermec was claiming it owns the RFID patents and wants everyone to pay royalties - result:unsteady market and only pilot programs

In 2006 the results are being published of tests performed with the first release of  Gen2 compliant RFID Readers and RFID Tags.  The test results are not spectacular.  Wal-Mart slows its roll-out plans - result: slow market growth

In 2007 (of late 2006) the second generation of RFID Hardware was released. Performance was much  improved  and  prices have dropped for both readers and tags - result: closed loop applications have become more common

In 2008 what will happen? The performance of RFID equipment is excellent for pallet and case applications.  RFID Tag and Reader prices have dropped and are very affordable.  Performance is good enough for item level applications to be considered.  What is the key to unlock the door that is holding back the RFID market?  One word...Volume!  If you talk to any of the RFID chip companies (i.e. Alien, Impinj...).  They need volume to drive down prices.  It is no longer an issue of technology it is an issue of economies of scale.  They need volume to drive down tag prices thus making item level applications (pharma, clothing ...) become cost justifiable. Wal Mart, DoD and other retailers need to keep the pressure on and the FDA needs to mandate that all drugs sold in the United States be serialized with a RFID tag. 


Wow!  Looking back on what I just wrote I was only planning on writing a quick post but I really got into this topic:)

While BlueBean mainly focuses on EPCglobal Gen2 RFID applications and some active RFID solutions the recent announcement from Hitachi about a new  RFID Powder is very interesting.  Leveraging the semiconductor  industry advances in manufacturing smaller and smaller IC's Hitachi has managed to strip out all unnecessary circuits to create the smallest RFID tag - .05 x.05 mm - WOW!

Their target market is mainly financial - anti-counterfeit - bonds, currency...

You could easily see where this technology could be embedded in different paper products.  Legal companies, accounting companies and hospitals could take advantage of having RFID tags in every piece of paper.  These organizations all face mountains of paperwork. 

What about the jewelry industry?  Another great opportunity for "Powder" RFID Tags.

It will be interesting to see what form factor the RFID Readers will take to read these little RFID tags.

Hitachi says the RFID Power will be commercially available in 2-3 years.

 As RFID technology matures and the capabilities of RFID equipment improves new and interesting applications arise.  BlueBean has recently started a project using active RFID for a electronics retail chain that wants to correlate the amount of time its sales people spend on the show room floor in their respective departments to actual sales.

Hmmm...who would have thought that RFID could drive more sales?  We all know how Wal Mart is improving out of stocks by utilizing passive RFID to improve its supply chain but to improve people utilization is an interesting idea.  If you have have not spent
time in electronics retail you would be surprised how real-time it is.  Managers look at sales and other metrics by the hour so adding an additional metric of sales people location utilization to this mix will allow them to keep optimizing the same resources to drive more sales.  MAN I LOVE THIS TECHNOLOGY!

Let’s talk now about how RFID is being used to improve healthcare and how RFID can be used in hospitals.

 

The RFID technology allows verification of the patient and procedure as well as surgical site.  This can be verified pre-op and in the operating room.

                        

We hear about it on the news all to often that the surgeon performs an operation on the wrong appendage or even performs the wrong operation. 
This use of RFID technology would eliminate any confusion.  This is good news for people like you and me.  Now, the question is, does your hospital use RFID at all?  You may want to check into it!

 

And, by the way, if your hospital doesn’t currently use RFID, BlueBean has great solutions for healthcare systems looking to use RFID in their facilities.  To find out more, check out RFIDHealthcare.com.

So, we’ve talked about how RFID works and how you can get the technical help you need.  Now, let’s talk about a really great RFID product that is simple and easy to use (even for a non-techie!).

                                                         

The BlueBean Simple Conveyor Portal is a radio frequency identification (RFID) conveyor portal/tunnel solution that is specifically designed to be used with existing conveyors.  The portal uses T-slot technology (if I can do it, so can you!) for easy modifications and assembly.  It’s so easy that only one hand-tool is required and it’s even included with your kit!

 

And the best part is that you can use your existing RFID equipment to get this portal up and running.  And, if you don’t have existing RFID equipment, you can order that at RFIDSupplyChain.com too!

 

Additionally, the BlueBean RFID Simple Conveyor Portal Solution kit allows for adjustable antenna mounts and four-side read capability  -- that means less errors and greater productivity.  Even better, the BlueBean RFID Simple Conveyor Portal Solution can be customized for your specific application.  Now that is simple!

Thanks to everyone who sent me their marketing ideas, tips and tricks.  No surprise that many of you said that you are branching out into the world of blogging as a way of reaching more people while staying on a budget.

 

There seems to be some general ideas that apply whether you are selling RFID equipment, some other technology or dog grooming supplies!  Here they are:

Blogging:  this is a great way to not only educate other about your products, but also, as I have tried to do, answer questions and dialogue about what others say they’d like to hear about.

Newsletters:  many of you said that you have switched from the old snail mail versions (hey, no more print or mailing costs!) to enewsletters.  With so many enewsletter distribution  companies out there it’s easy to find smething within your budget that is still able to reach your target audience.

Press releases:  of course, we already talked about these and they are still the most popular way to get news out about your company to those that may be interested in publishing it.  When I started we had to pay a wire service and send out hard copies.  Now, the internet makes it so much easier!

Surveys and “touching base” cards:  I know personally that these can work really well.  Sending a new customer a survey to see how they liked the experience and if they have any recommendation for improvement is a great way to foster a rapport with new customers right off the bat.  Additionally, sending out a note to customers who haven’t either purchased or received a quote from you in the last six months, keeps your company name on their radar screen and reminds them that you are ready to serve their needs.

Editorial calendars:  many of you said that you follow your target publications’ editorial calendars and offer information and/or our expertise if you see an article coming up that your company has a expert viewpoint on.  (this is also a good way to look at where you might spend print advertising dollars if that’s in the budget)

 

 

We’ve talked a lot about the various components of an RFID system and how they work.  Now, let’s talk a little about marketing these products.

 

One of the best ways to get your company name out in public view and without spending a whole lot of money is a press release.  Press releases can be distributed to industry publications and other niche publications that apply to your specific product.  In addition, there are a number of submission sites online that will distribute your release for free.

 

We also use a number of pay sites that guarantee inclusion on google and a number of other search engines.  Everyone has heard the old adage…the best publicity is free publicity.  Press releases are a great way to do that. 

Here is an example of a press release that we sent to industry publications.  Material Handling Management picked up our press release on the BlueBean Dock Door Kit and featured it on their website.

 

This was great publicity for our company and our product and the only cost was our time and effort to write and send out this release.  Pretty cool.  Let me know if you have any tips or tricks on getting free publicity…I look forward to hearing from you!

We've talked about many of the RFID system add-ons that enhance the performance of the system.  Now, let's talk about RFID printers.

 

The coolest thing that RFID printers do, at least from this non-techie's point of view, is that they can encode the RFID information, print a barcode AND include human-readable information as well! 

 

The cool thing for rest of the world is that these printers provide a label that can be read essentially anywhere...whether by an RFID reader, a barcode scanner or even, dare I say it, ME!

 

This is a great add-on for companies that must use different types of encoding depending on where they are shipping their goods.   See, now if RFID actually stood for Really Fun Irish Dancing, you'd  be missing out on all of this great information.

 

Stay tuned for more RFID add-ons...guess what some companies decided to do?  Put all the components together in an RFID kit.  We'll talk about those soon...

This is a three part series covering the three main pieces to an RFID system: 

Three main Components:

Hardware (1/3)     
Middleware (2/3)     
Back - End Software (3/3)

Middleware (2/3):     {Getting the Tag ID and Reader info. to your system}

All systems need to be equipped with a middleware application.  Middleware is software that talks to the RFID readers.  It is this application that bridges the RFID system.  The middleware connects the reader to possible back - end software , while managing the system data and business logic

Most middleware programs are add - ons to an application server. 

“An application server (or app server) is a component-based product that resides in the middle-tier of a server centric architecture. It provides middleware services for security, state maintenance, along with data access and persistence.”          (Courtesy of Barry and Associates)

Price becomes a factor when choosing the right middleware to use.  Larger companies who are already using advanced applications may be able to find an add-on or tool-kit for their system; however, a smaller company may need to look into the open-source market.

Integrating the RFID middleware is an extensive project that may require software solution consulting.



A few examples of RFID middleware apps. (* signifies open source)

** Blue Bean offers RFIDSimpleware which is an easy way to connect quickly and effectively to your RFID reader, they can further deliver middleware needs as required **

SunRFID* - Sun Microsystems 
Microsoft - Biz Talk  - Article Covering Business Aspects
Oracle* 
IBM Websphere
Singularity*

Wow, we have covered lots of ground on the different parts of the RFID system the additional components.  Now, let's talk about software.

RFID software makes reading and retrieving the tag data easier.  Products like BlueBean's RFIDSimpleware, which comes in a few different version for different readers, allows you to easily retrieve tag data without having to write any code yourself (hey, is that perfect for us non-techies or what?)

Other software, such as Integral RFID's Hotspot assists the user in determining the best place to place the tag on your products to optimize readability.

Once again, although not a necessary component of the RFID system, it certainly can make RFID implementation easier.

Stay tuned for more non-techie RFID talk coming to a blog near you soon!

Ok... the question of UHF vs. HF for item level RFID tagging is bigger than Beta vs.VHS or for the younger people Blue-ray vs. HD-DVD.  This is an all out war between the established HF companies and the new up-and-coming UHF companies.  There is so much propaganda out there it is difficult to determine fact from fiction or truths from half truths. In order to compare these two technologies it would be fair to state that I will discuss near field UHF not far field UHF.  Some of the HF folks like to compare HF to far field UHF to tilt the playing field in HF's favor

I am actually going to start with discussing the cost of making each type of RFID tag.  If history teaches us anything is that the low cost producer usually wins all else being equal.  Assuming the performance of both HF & UHF tags are the same (I will discuss and contrast performance in the next few posts) then tag costs will determine the winner. 

HF Tags 2 layers of many turns of etched copper.  This is expensive to manufacture (look at all the copper!) - actual size of the tag 12mm
UHF Tags 1 layer and can use conductive inks (very simple looking - that is a good thing!) - actual size of the tag is 9mm

I also look at the large companies that would have an impact on pushing the decision to UHF or HF.  Wal-Mart has already committed to UHF far field for case and pallet tagging.  So I would summarize that Wal-Mart would not want to have two different  RFID technologies.

Also the major distributors; Cardinal, McKesson and ABC have come out in favor of near field UHF. 

Back to the question at hand..."UHF vs. HF" for item level RFID tagging?  If I was a betting man there are several reasons why I would pick near field UHF to become the item level tagging standard:
1. UHF is much easier to manufacture
2. Simple antenna geometries
3. Inexpensive conductive ink process

All else being equal the low cost producer wins.  In this case UHF would seem to be the logical choice. 

Stay tunned for more posts about RFID hardware and deployments costs and I will contrast performance issues between these two competing technologies.

This is a three part series covering the three main pieces to an RFID system: 

Three main Components:

Hardware (1/3)     
Middleware (2/3)     
Back - End Software (3/3)


Hardware (1/3):
The hardware is the RF - analog side to the RFID system.  It is here where the tag information will be read and sent to the interrogator for analysis.

Readers:

Readers handle the tags and also manage the power, number of reads, and also I/O's that may be added to the system.

Readers come in many flavors and the right reader is a preference to the application’s needs.

- - An ALIEN 9800 reader is being used for my RFID project - -

Tags:

There are many ways to read and represent an RFID tag, and the technology continues to grow and advance.  The fundamental ways to read a tag is to have the tags passively or actively perform.  The active tag is equipped with an internal power source as to transmit who it is when it is needed.  The passive approach may use power from the reader, or could also manipulate the readers signal as to distinguish its identity.  Class 1 Generation 2 tags are a newer more secure class for tagging.

- - Class 1 Generation 2 is being used in the project - -

Antennas:

Antennas are what send and receive the RF information.  Most systems use at least two antennas to handle the transmitting and receiving.  The pattern of the antennas transmission and reception is design to get the most reads for the amount of power being used; providing the largest reception band possible.  The most popular pattern is a circular pattern, to create a spherical zone of interrogation.

Recently I was an expert moderator for a 400 level RFID class at a university and a student posted an interesting question:

"How do you communicate to upper management the benefits of using RFID?" 

This is a very good question.  I typically break down the benefits into three categories:

1. Intangibles - benefits of implementing a RFID system where no dollar savings can be calculated (Better costing, improved charge audit capabilities, improved job satisfaction...)

2. Soft Savings - you can calculate a dollar savings but it will not be used as part of the ROI calculation (i.e. improvement in nurses productivity by improving out of stocks so the nurse doesn't need to search for supplies - 5% improvement * 40 nurses = $210,000/yr in productivity.  This is a soft savings because the number of nurses does not decrease.)

3. Hard savings - you can calculate a savings and it will reduce expenses or increase revenue (reduction in inventory shrinkage, reduction in headcount....)

It is important to note that for some projects the soft savings could be included with the hard savings to calculate a ROI for the project.  The other part of the ROI calculation is the cost piece...RFID Equipment, RFID Middleware, RFID Tags, Consulting & Design Services.

The RFID Antenna is the last of the three necessaray components (the other two we already discussed -- the RFID reader and the RFID tag).

To put it simply, the RFID antenna is what "connects" the tag to the reader.  When a tag passes by the reader it is the antenna that transmits the tag's signal to the reader.

There are a few different types of antennas.  Linear antennas are used if the tags always pass by the reader in the same way.  Circular antennas are used if the orientation of the tag cannot be controlled.

So, now we have covered the three necessary components of an RFID system.  We'll talk about some other add-on components such as RFID portals, software and RFID printers in upcoming blogs.

Alien Technology has recently introduced what they call a game changer when it comes to RFID Readers.  They introduced the ALR-9650, a single Gen2 reader with an integrated antenna. They introduced a very different form factor then what we expect from RFID readers.  Typical readers have four or eight antenna ports and cost $1500-$2000 each and if you add in one antenna it would cost an additional $200.  The ALR-9650 is a single unit that is a reader and antenna which makes it perfect for single read point applications. Just in case you need a two read point reader it allows for a second external antenna.  The ALR-9650 can be purchased for around $850.

The ALR-9650 takes up little space; at only 9 inches square it uses less than half the real-estate of a typical reader and antenna system. This unit is nice to use in applications where the reader is visible to the consumer or general public since there are no antenna cables and is rather stylish. Colleges and universities could create cost effective labs for students to get some hands on experience.

Alien has again shown that it can compete against the big RFID hardware suppliers such as Motorola and Intermec.  They continue to innovate and are quicker to the market with innovative products like the ALR-9650.


.

Invariably, every discussion about an RFID solution comes down to the same question:  How far will I be able to read the tag?  And, of course, everyone expects a quick and reliable answer.  For those of us that deal with RFID every day, we know that this seemingly innocuous question is anything but. 

For passive RFID (where the tag does NOT have its own power source), there are many variables that affect the read distance including:

• the frequency of the RFID hardware 
• the RFID reader 
• type of antenna 
• placement of antenna 
• type of tag 
• placement of tag 
• item being tagged 
• what the item is made of 
• what the items contains 
• the packaging around the item 
• presence of metal 
• presence of liquids 
• temperature 
• humidity 
• other RF interference 

You get the picture.  It is easy to now see why there is no exact answer to this question without testing in your envirornment.  In following posts, I will discuss some of these points in additional detail.

As I have previously talked about, branding and company name are very important.  You want a name that is easy to remember and one that tells a story. 
Of course, this doesn't mean that somewhere out there that someone else didn't think of the same company name or using something similar.  Sometimes when we say "BlueBean" to someone they think we are a coffee shop (that would be some funky blue cofffee) or exercise equipment (have you seen the infomercial yet...you could have lost 20 pounds already!)

When one of my colleagues was looking for BlueBean online, he came across this video on YouTube when searching under "BlueBean."

Now I could be wrong but I don't think this "Blue Bean" can tell you which RFID reader you may need or which version of RFID middleware would work best for you.  But it just goes to show that you never know when someone else may use your company name for something that is totally unrelated to your company's purpose.

 

I guess that's the one of the challenges of marketing.

Until next time...

One day my then four-year-old daughter was looking at my computer and asked  “Mom, what is a bluebean anyway?”  OK, not only am I a non-techie but  now I have to explain it in language a four-year-old will understand?  Yikes!

 

Let me tell you what it says on the BlueBean website:  The items you need to track, anything from cases of goods throughout a supply chain to mobile assets throughout a facility, let’s just call them beans. You need to know where all of your “beans” are at any given time. Radio Frequency Identification technology gives you that visibility and more. It allows you to locate any individual bean if it is properly tagged. That's the blue bean!

 

The company name BlueBean is a great example of creating a name and a brand that tells a story.  That’s an important part of your marketing and really the first step you need to take in order to market your company effectively and efficiently.

 

When the company began the executives knew that they didn’t want another name that started with RFID.  Why?  Because every other company out there doing RFID seemed to have a similar name.  They wanted something that would stand out…hence the BlueBean.  When someone is looking for RFID consulting or RFID equipment it’s a lot easier to remember the name BlueBean than one of the dozens of “RFID XYZ” companies out there.

 

So, now you know how BlueBean relates to RFID….pass it on!

 

Until next time….

 

 

I want to take a break from my usual posts and take a little time to brag about a project we just completed.  BlueBean, headquarter in Indianapolis, Indiana, was selected to provide RFID products and RFID services to General Electric (GE) Aviation. As we all know GE is HUGE and what most of us call a pilot would usually constitute a full implementation for most companies.  GE Aviation implemented RFID at one location to evaluate reducing the size of its work in process (WIP).  GE Aviation produces jet engines worth sometimes millions of dollars each.  The manufacturing and assembly of these engines takes place all over the world so it is easy to understand the size (cost) of their supply chain. The challenge for GE was how to reduce the size of their WIP while still maintaining on-time shipments.

RFID to the rescue!  By installing BlueBean’s dock portals equipped with Alien RFID Readers at all dock doors and at choke points between departments provided production planners better visibility and more timely information.   Keep in mind that most engine parts they deal with cost tens of thousands of dollars so they have great interest in just-in-time inventory control.   It is a fine line the production planners must walk between having too much inventory and starving production.  The visibility RFID provides allows the planners to better match WIP with production needs.  With their WIP worth hundreds of millions of dollars company wide even a small improvement would be worth millions of dollars.

Keep tuned in for a follow-up post when the results of the pilot are available.  I would expect sometime by mid 2008. 
 

In the midst of all the rumors indicating Wal-Mart was scaling back or slowing its RFID ambitions the retail giant sends a strong signal that their plans for RFID is alive and well.  To date Wal-Mart has been slow to penalize suppliers that were tardy implementing RFID but that has all changed.  For the first time a division of Wal-Mart, Sam’s Club, will required its suppliers to apply RFID tags to pallets by Jan. 31  or face a service fee for every pallet shipped without a pallet tag.  The fee will be $2 per pallet starting Feb. 1 and increasing to $3/pallet on Jan 1, 2009.

Make no mistake that Wal-Mart has done exactly what it wanted to accomplish when it announce its RFID mandate.  At the time of its announcement RFID Technology was immature and very expensive.  Suppliers were upset and for a good reason.  100% read accuracy was very difficult to attain and the RFID passive tags were $.70/ea.  Wal-Mart knew that they needed to accelerate the development of the next generation of RFID hardware and create the demand so hardware providers had the economies of scale to quickly drive down RFID tag and RFID reader prices.  Fast forward to Jan 2008 and RFID tag prices are around $.10/ea and the Gen2 standard has become widely accepted.  100% pallet & case level readability is easily achievable. 

What’s next for the retail giant?  Well with RFID tag prices heading lower Wal-Mart is considering just when to push the RFID tagging requirement down to the item level.  That decision has already been made at Sam’s Club.  They will require suppliers to apply RFID tags at the item level for shipments to the DeSoto DC and related stores by Oct. 31, 2009.

Wal-Mart has executed its RFID grand plan with perfection and has shown why it has the most efficient supply chain in the world.