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Radio Frequency ID Presentation By: Group 3 Nikki Baker Lauren Bright Julie Kim Kristin Radio Frequency ID Presentation By: Group 3 Nikki Baker Lauren Bright Julie Kim Kristin Harbin Jessica Tipp 1

Introduction How many people have a car… 2 Introduction How many people have a car… 2

RFID is everywhere! 3 RFID is everywhere! 3

Objectives • • What is RFID History How RFID works Case Studies – Walmart Objectives • • What is RFID History How RFID works Case Studies – Walmart – Go. St. Louis – Healthcare – Animals • Issues and Concerns • Future Trends 4

Overview • http: //www. youtube. com/watch? v=9 Om 7 Ttg. Nlw. M (time: 1: Overview • http: //www. youtube. com/watch? v=9 Om 7 Ttg. Nlw. M (time: 1: 50 -4: 11) 5

Brief History • Radar discovered in 1935 • 1950 -1960 Companies began to use Brief History • Radar discovered in 1935 • 1950 -1960 Companies began to use for security purposes • 1970 s - First patent for an active RFID tag, Gov’t began to use to track nuclear materials, Agriculture began to use to track cows • Today it is used all over the place http: //www. rfidjournal. com/article/view/1338/1 6

How RFID works • Divided into four parts 1. A scanning antenna – – How RFID works • Divided into four parts 1. A scanning antenna – – – Puts out radio-frequency signals Provides a means of communicating with the RFID tag It provides the RFID tag with energy to communicate 2. A transceiver -reader 3. A transponder - the RFID tag 4. A writer http: //www. technovelgy. com/ct/Technology-Article. asp? Art. Num=2 7

Parts of RFID • http: //www. aimglobal. org/services/R FIDSpotlight. asp (middle of video) 8 Parts of RFID • http: //www. aimglobal. org/services/R FIDSpotlight. asp (middle of video) 8

How RFID Works Writer RFID Tag (Transponder) http: //www. technovelgy. com/ct/Technology-Article. asp? Art. Num=2 How RFID Works Writer RFID Tag (Transponder) http: //www. technovelgy. com/ct/Technology-Article. asp? Art. Num=2 Scanning Antenna Transceiver 9

Types of RFID Tags Active Tag Battery Powered Cost 2 More than $10 Passive Types of RFID Tags Active Tag Battery Powered Cost 2 More than $10 Passive Reader Powered Less than $1 Distance 1 100 feet or more Typically a few feet Size 1 Can be as small as a grain of rice Must be able to fit a battery Lifespan 1 As long as battery lasts As long as tag is in tact Memory 1 Smaller around (12 K) Larger (512 K) 1. http: //www. technovelgy. com/ct/Technology-Article. asp? Art. Num=47, 2. www. rfidhut. com/pages/How-much-does-RFID-Cost. html 10

Tag Frequency Distance What? Low Frequency 125 KHz (Up to 20 inches) 2 Very Tag Frequency Distance What? Low Frequency 125 KHz (Up to 20 inches) 2 Very close proximity tag, tag must be close to reader 1 Smart cards, speedpass 1 High Frequency 13. 56 MHz (Up to 10 feet) 2 Short proximity 1 Healthcare 1 Ultra High Frequency 860 -960 MHz (Usually 3 -20 feet) 2 Highly used, longer proximity 1 Supply chain distribution 1 1. http: //www. rfidradio. com/? p=16, 2. www. barcoding. com/rfid/private/barcoding-inc-RFID-Report. pdf Sample 11

Cost of RFID • Global – RFID spending including all hardware, systems and integration Cost of RFID • Global – RFID spending including all hardware, systems and integration is estimated to have reached $4. 96 billion worldwide in 20071 • RFID Systems – UHF Readers cost between $500 -$2000 • A low frequency reader can be under $100 – Antennas cost $250 and up – Tags cost anywhere from less than $1 to $50 – Many more administrative and setup costs 2 1) http: //www. rfidjournal. com/faq/20, viewed March 23, 2009 2) Hasselbacher, N. (2008). “RFID: It’s all in the numbers, ” Converting Magazine, Vol. 26, Iss. 12, pg. 38. 12

 • Began in 1962 in Rogers, Arkansas • Low-Cost Focus • Employs more • Began in 1962 in Rogers, Arkansas • Low-Cost Focus • Employs more than 2 million associates worldwide – 1. 4 million in the U. S. • Serve more than 100 million customers per year 13 http: //walmartstores. com/About. Us, viewed April 8, 2009

RFID at Wal-Mart • June 2003 – Wal-Mart announced that its suppliers would have RFID at Wal-Mart • June 2003 – Wal-Mart announced that its suppliers would have to RFID tag crates and pallets as an improvement over barcodes 1 – Top 100 suppliers were supposed to comply by January 20052 – Wal-Mart was the first major retailer to demand suppliers use RFID, though the technology is 50 years old 2 1) Krotov, V. (2008), “RFID as a Disruptive Innovation, ” Journal of Theoretical and Applied Electronic Commerce Research, Vol. 3, Iss. 2, pg. 44, 16 pgs. 2) Gaudin, S. (2008), “Some suppliers gain from failed Wal-Mart RFID edict, ” Computerworld. 14

Benefits of RFID for Wal-Mart • Save billions of dollars in supply chain efficiency Benefits of RFID for Wal-Mart • Save billions of dollars in supply chain efficiency 1 • Reduce out of stock items – Average U. S. out-of-stock rate: 8% – Estimated potential lost sales from out of stock items • 3. 4% for retailers • 2. 6% for suppliers 2 1) Krotov, V. (2008), “RFID as a Disruptive Innovation, ” Journal of Theoretical and Applied Electronic Commerce Research, Vol. 3, Iss. 2, pg. 44, 16 pgs. 2) Hardgrave, B. ; Langford, S. ; Waller, M. ; and Miller, Rl (2008), “Measuring the Impact of RFID on Out of Stocks at Wal-Mart, ” MIS Quarterly Executive, Vol. 7, No. 4, pgs. 181 -192. 15

Out of Stock Causes Hardgrave, B. ; Langford, S. ; Waller, M. ; and Out of Stock Causes Hardgrave, B. ; Langford, S. ; Waller, M. ; and Miller, Rl (2008), “Measuring the Impact of RFID on Out of Stocks at Wal-Mart, ” MIS Quarterly Executive, Vol. 7, No. 4, pgs. 181 -192. 16

Out of Stock Consumer Responses Hardgrave, B. ; Langford, S. ; Waller, M. ; Out of Stock Consumer Responses Hardgrave, B. ; Langford, S. ; Waller, M. ; and Miller, Rl (2008), “Measuring the Impact of RFID on Out of Stocks at Wal-Mart, ” MIS Quarterly Executive, Vol. 7, No. 4, pgs. 181 -192. 17

RFID and Out-Of. Stocks • University of Minnesota Study • 24 Wal-Mart stores – RFID and Out-Of. Stocks • University of Minnesota Study • 24 Wal-Mart stores – 12 RFID enabled – 12 Control stores • Watched improvements over 29 weeks • Concluded that RFID is responsible for 21% improvement in out-of-stocks Hardgrave, B. ; Langford, S. ; Waller, M. ; and Miller, Rl (2008), “Measuring the Impact of RFID on Out of Stocks at Wal-Mart, ” MIS Quarterly Executive, Vol. 7, No. 4, pgs. 181 -192. 18

Daisy Brand Dairy Products • Fully compliant with Wal-Mart’s mandate • Extended RFID into Daisy Brand Dairy Products • Fully compliant with Wal-Mart’s mandate • Extended RFID into other parts of their business process as well • Claim that RFID cut in half the time to load delivery trucks 1 • Knows when pallets arrive at Wal-Mart and when they are unloaded • Can tell if promotions take place as planned 2 1) Gaudin, S. (2008), “Some Suppliers Gain from Failed Wal-Mart RFID edict, ” Computerworld, www. computerworld. com, viewed February 25, 2009 2) Weier, M. (2008), “Wal-Mart Gets Tough on RFID, ” Information. Week, http: //www. informationweek. com/story/show. Article. jhtml? article. ID=205900561, viewed February 25, 2009. 19

Texas Instruments Inc. • Fully implemented Wal-Mart’s mandate • Only uses the technology on Texas Instruments Inc. • Fully implemented Wal-Mart’s mandate • Only uses the technology on shipments going to Wal-Mart – Reduces their hardware investment • Compliant for under half a million dollars 20 Gaudin, S. (2008), “Some Suppliers Gain from Failed Wal-Mart RFID edict, ” Computerworld, www. computerworld. com, viewed February 25, 2009.

Problems with Implementation • Wal-Mart has had difficulty getting suppliers to implement RFID • Problems with Implementation • Wal-Mart has had difficulty getting suppliers to implement RFID • The price is large enough that suppliers are taking their chances with being non-compliant – $15, 000 -$20, 000 just for tags, readers, and middleware for a small supplier • They also have to pay for training and handling the new RFID information 21 Gaudin, S. (2008), “Some Suppliers Gain from Failed Wal-Mart RFID edict, ” Computerworld, www. computerworld. com, viewed February 25, 2009.

Wal-Mart is Tired of Suppliers Not Taking Them Seriously • January 2008 – Announced Wal-Mart is Tired of Suppliers Not Taking Them Seriously • January 2008 – Announced that suppliers will be charged a $2 fee for each pallet shipped to the Sam’s Club distribution center in De. Soto, Texas without an RFID tag 1 – Sam’s will then affix a tag to the pallet 2 – These tags cost suppliers $. 10 -. 25 per tag – The fee will escalate along with the length of non-compliance, up to $3 per tag 3 1) Gaudin, S. (2008), “Some Suppliers Gain from Failed Wal-Mart RFID edict, ” Computerworld, www. computerworld. com, viewed February 25, 2009. 2) Weier, M. (2008), “Wal-Mart Gets Tough on RFID, ” Information. Week, http: //www. informationweek. com/story/show. Article. jhtml? article. ID=205900561, viewed February 25, 2009. 3) Wailgum, T. (2008), “Wal-Mart is Dead Serious About RFID, ” CIO, http: //www. cio. com/article/print/173702, viewed February 25, 2009. 22

New Developments • January 2009 – Wal-Mart requires Chinese suppliers to use RFID tagging New Developments • January 2009 – Wal-Mart requires Chinese suppliers to use RFID tagging to label shipments • Wal-Mart has 1, 000 Chinese suppliers – Because of recent safety concerns, these Chinese suppliers required to include information such as their name and are factory info, as well as any subcontractors involved in production 1 • 2009 – RFID tags on individual selling units in Sam’s Club 2 1) http: //www. rfidnews. org/2008/11/06/walmart-to-require-rfid-tagging-from-chinese-suppliers, viewed February 25, 2009. 2) Hardgrave, B. ; Langford, S. ; Waller, M. ; and Miller, Rl (2008), “Measuring the Impact of RFID on Out of Stocks at Wal-Mart, ” MIS Quarterly Executive, Vol. 7, No. 4, pgs. 181 -192. 23

Go. St. Louis Executive Director: Nancy Lieberman • Non-profit organization, encourages individuals and families Go. St. Louis Executive Director: Nancy Lieberman • Non-profit organization, encourages individuals and families in the region to adopt a healthy lifestyle by getting fit, staying active, and eating a nutritional diet year round • Founded in 2000 • In 2008 had 18, 000 participants • Uses RFID technology for its timing of races 24 www. gostlouis. org, viewed March 20, 2009 and Interview of Nancy Lieberman

Chronotrack Partner: Bob Finnegan • Business started in August 2008 • Has vast knowledge Chronotrack Partner: Bob Finnegan • Business started in August 2008 • Has vast knowledge of RFID technology and used this knowledge to a new way to time races. create • Innovated the D-Tag Interview by Bob Finnegan 25

D-Tag • Updates race HF chip technology • Uses a disposable UHF tag • D-Tag • Updates race HF chip technology • Uses a disposable UHF tag • Cost and time savings – Only costs 15 cents • First time that Go. St. Louis used this technology • http: //www. youtube. com/watch? v=IB 02 LEq. Qk. LU http: //www. chronotrack. com/home/, , viewed March 20, 2009 and interview by Bob Finnegan 26

Chronotrack • In 2009 will be the number 1 timing system in US. • Chronotrack • In 2009 will be the number 1 timing system in US. • Future of Chronotrack - working on Triathlons and other uses but we will have to see what they do. 27 Interview by Bob Finnegan

RFID in Healthcare 28 RFID in Healthcare 28

Main uses of RFID in Healthcare Real Time Locating Systems (RTLS) • Patient tagging Main uses of RFID in Healthcare Real Time Locating Systems (RTLS) • Patient tagging • Locating staff, visitors, and assets Error Prevention • Theft prevention and cost control • Pharmaceuticals anti-counterfeiting procedures (e. g. for defense of lawsuits) • Recording • Drug trials compliance • Patient compliance (e. g. taking drugs) • Track and trace most medicines, consumables, and assets 29 http: //www. idtechex. com/research/articles/rapid_adoption_of_rfid_in_healthcare_00000470. asp

“An exploratory study of radio frequency identification (RFID) adoption in the healthcare industry. ” “An exploratory study of radio frequency identification (RFID) adoption in the healthcare industry. ” • The Global market for RFID tags and systems in healthcare in 2006 was $90 million • Estimated to steadily increase to $2. 1 billion by 2016 • Problems leading to marginal adoption: – high implementation and operation costs – lack of standardization – unawareness of importance Lee, C. , Shim, J. “An exploratory study of radio frequency identification (RFID) adoption in the healthcare industry. ” European Journal of Information Systems: Including a Special Section on Healthcare Information, Vol. 16, Iss. 6, pg. 712 -724. 30

RFID Adoption in Healthcare • Web-based survey administered to “decision makers” at 865 US RFID Adoption in Healthcare • Web-based survey administered to “decision makers” at 865 US hospitals • 126/865 completed surveys • 56/126 of the respondents were CIOS Lee, C. , Shim, J. “An exploratory study of radio frequency identification (RFID) adoption in the healthcare industry. ” European Journal of Information Systems: Including a Special Section on Healthcare Information, Vol. 16, Iss. 6, pg. 712 -724. 31

RFID Adoption in Healthcare • Factors studied – Technology push • Perceived benefits • RFID Adoption in Healthcare • Factors studied – Technology push • Perceived benefits • Vendor pressure – Need pull • Performance gap • Market uncertainty – Presence of champions Lee, C. , Shim, J. “An exploratory study of radio frequency identification (RFID) adoption in the healthcare industry. ” European Journal of Information Systems: Including a Special Section on Healthcare Information, Vol. 16, Iss. 6, pg. 712 -724. 32

RFID Adoption in Healthcare Results: • Presence of champions- most critical factor in adoption RFID Adoption in Healthcare Results: • Presence of champions- most critical factor in adoption of RFID • Performance gaps from existing systems influence RFID adoption • Technology knowledge- significant moderator of adoption • Organizations may adopt RFID during market uncertainty • Financial resources- non-determinant of RFID adoption benefits of RFID- important driving factor • Perceived • RFID is not expected to reduce overhead costs • Vendor pressure does not lead to RFID adoption unless marketed to top managers • RFID is in an early adoption stage Lee, C. , Shim, J. “An exploratory study of radio frequency identification (RFID) adoption in the healthcare industry. ” European Journal of Information Systems: Including a Special Section on Healthcare Information, Vol. 16, Iss. 6, pg. 712 -724. 33

“Key drivers for the continued use of RFID technology in the emergency room” • “Key drivers for the continued use of RFID technology in the emergency room” • ABI research forecasted that in 2007 revenue in RFID software and services would decrease to $3. 1 billion, 15% decrease from 2006 • Demand for RFID technology in healthcare has not been very strong • Expectation-confirmation model (ECM) theory to assert that improving users’ experience with IT can enhance satisfaction and lead to continued usage • Survey given to 85 caregivers who worked in the ER in 5 hospitals in Taiwan Chen, C. , Wu, J. , Sheng Su, Y. , Yang, S. “Key drivers for the continued use of RFID technology in the emergency room. ” Management Research News, Vol. 31, Iss. 4, pg. 273 -288. 34

RFID Adoption in Healthcare Benefits of RFID in hospitals: • Automated admitting • Reduction RFID Adoption in Healthcare Benefits of RFID in hospitals: • Automated admitting • Reduction in medical errors • More efficient screening and treating processes When RFID is implemented • Patients can be tracked from time they enter the hospital to the time they leave • Wristbands are scanned and all medications can be tracked • Entrance/exit to specific area can be monitored Chen, C. , Wu, J. , Sheng Su, Y. , Yang, S. “Key drivers for the continued use of RFID technology in the emergency room. ” Management Research News, Vol. 31, Iss. 4, pg. 273 -288. 35

Results When the following objectives are met an experience with RFID can improve caregiver Results When the following objectives are met an experience with RFID can improve caregiver satisfaction levels • Caregivers must perceive RFID to be useful • RFID must have good interoperability • RFID must provide some relative advantage Improved satisfaction leads to continued use Chen, C. , Wu, J. , Sheng Su, Y. , Yang, S. “Key drivers for the continued use of RFID technology in the emergency room. ” Management Research News, Vol. 31, Iss. 4, pg. 273 -288. 36

RFID and Animals Livestock tracking- cattle, pigs, and sheep • Used for animal health RFID and Animals Livestock tracking- cattle, pigs, and sheep • Used for animal health and wellness, tracking and tracing, and carcass-quality information • National Animal Identification System (NAIS) proposed USDA in 2003 by the – Producer participation is voluntary except in MI where cattle have to be tagged in hopes to eradicate bovine tuberculosis http: www. rfidjournal. com/article. view/3725/2, viewed April 2, 2009 37

RFID and Animals • In 2007 World RFID spending on farming and animals was RFID and Animals • In 2007 World RFID spending on farming and animals was $233 million. • In 2017 it is estimated to reach $2. 93 billion • China is the largest RFID largely due to animal market population – Asian countries are developing new high frequency tags with 50 -400% greater read range. http: www. rfidjournal. com/article. view/3725/2, viewed April 2, 2009 38

RFID and Animals • Current tags used – Passive tags, low frequency, with a RFID and Animals • Current tags used – Passive tags, low frequency, with a coil antenna • Can withstand water and damage – Must be located within a few inches of the reader so producers have to force animals through checkpoints – Impossible to read the tags in large numbers simultaneously • New tag just released Feb. 2, 2009 vendor Digital Angel – RFID – Battery-powered r. Tag – Can be read up to 100 ft away and reader can read up to 310 tags at once – Weatherproof – Costs about $3. 50/tag http: www. rfidjournal. com/article. view/4581/1, viewed April 2, 2009 39

RFID and Animals • Humane Society of the US has long been the biggest RFID and Animals • Humane Society of the US has long been the biggest user of RFID microchips, it tags and scans thousands of animals per year • Problems occur because the various tags used operate at different frequencies • Pets are sometimes euthanized before being identified due to this problem http: www. rfidjournal. com/article. view/1976/1, viewed April 2, 2009 40

Issues • Research study found that only 13. 7% of respondents knew about RFID Issues • Research study found that only 13. 7% of respondents knew about RFID technology 1 • Another study done in 2005 found that approximately 75% of consumers interviewed had no idea what RFID was 2 • Often times, consumers are not even aware they are being “tracked” by RFID devices • At the very least, consumers need a basic idea of what RFID is and does 2 1) 2) Razzouk, N. , Seitz, V. , and Nicolaou, M. (Spring 2008), “Consumer Concerns Regarding RFID Privacy: An Empirical Study”, Journal of Global Business and Technology. Vol. 4, Iss. 1; pg. 69, 10 pgs Glasser, D. , Goodman, K. , and Einspruch, N. “Chips, Tags and Scanners: Ethical Challenges for Radio Frequency Identification” 41

Tracking • With RFID, anything can be tracked – Consumer • Purchases • Spending Tracking • With RFID, anything can be tracked – Consumer • Purchases • Spending habits and preferences – Currency • Chips embedded into credit cards – People • Hospital patients, equipment • State drivers license, passports 42 Willey, Lorrie. (2007), “RFID and Consumer Privacy: Let the Buyer Beware!”, Journal of Legal, Ethical and Regulatory Issues, Vol. 10, Iss. 2; pg. 25, 13 pgs.

Privacy What defines privacy? • Laws will keep changing as society keeps changing • Privacy What defines privacy? • Laws will keep changing as society keeps changing • Why do we care as managers? • Violating privacy of consumers leads to distrust • Benefits of having consumer information leads to competitive advantage and market share • Viagra • Cheese • Consumers benefit from the conveniences from better CRM Razzouk, N. , Seitz, V. , and Nicolaou, M. (Spring 2008), “Consumer Concerns Regarding RFID Privacy: An Empirical Study”, Journal of Global Business and Technology. Vol. 4, Iss. 1; pg. 69, 10 pgs Chopra, S. and Sodhi, M. (2007), “In Search of RFID’s Sweet Spot”, Wall Street Journal/MIT Sloan. 43 http: //sickfacebook. com/images/facebook_privacy. gif

Main Concerns • Physical – Border security? – Bodily harm? • Tumors? – Problems Main Concerns • Physical – Border security? – Bodily harm? • Tumors? – Problems in Hospitals • Malfunctions in equipments • False alarms Landro, Laura. (2008), “The Informed Patient: The Hospital Is Watching You”, Wall Street Journal. (Eastern Edition), Nov 12, 2008. pg D. 1. 44

State Licenses & Passport Cards • Enhanced Driver’s Licenses – Available in Washington since State Licenses & Passport Cards • Enhanced Driver’s Licenses – Available in Washington since Jan. 2008 and in NY since Sept. 2008 – Other border states – MI, VT, AZ, intend to offer them as well 45 Naone, Erica. (2009), “RFID’s Security Problem”, Technology Review. Jan/Feb 2009, Vol. 112, Iss. 1; pg 72, 3 pgs.

State Licenses & Passport Cards • • • Cards use electronic product code (EPC) State Licenses & Passport Cards • • • Cards use electronic product code (EPC) tag, much like bar codes. Tags are inexpensive and under ideal conditions can be read from about 150 feet away. Identification cards can be read at longer range than many other RFID tags and people are more likely to carry them at all times. If you can get identification numbers out of the cards, then its relatively easy to counterfeit them, by loading a stolen ID number onto a blank, off-the-shelf chip. 46 Naone, Erica. (2009), “RFID’s Security Problem”, Technology Review. Jan/Feb 2009, Vol. 112, Iss. 1; pg 72, 3 pgs.

State Licenses & Passports • EPC tags can be disabled when a reader issues State Licenses & Passports • EPC tags can be disabled when a reader issues a “kill” command. • Could cause disruption if someone killed a large number of cards in a group. could also use this • Attacker tactic to harass individuals since a killed card is likely to draw suspicion. Naone, Erica. (2009), “RFID’s Security Problem”, Technology Review. Jan/Feb 2009, Vol. 112, Iss. 1; pg 72, 3 pgs. 47

Consumer Privacy • CASPIN and American Express • In 2005, Am. Ex filed an Consumer Privacy • CASPIN and American Express • In 2005, Am. Ex filed an application with the US Patent Office for a new “Method and system for facilitating a shopping experience” – in other words, would monitor the shopping patterns of its users with respect to time, and location within a store Razzouk, N. , Seitz, V. , and Nicolaou, M. (Spring 2008), “Consumer Concerns Regarding RFID Privacy: An Empirical Study”, Journal of Global Business and Technology. Vol. 4, Iss. 1; pg. 69, 10 pgs. 48

Consumer Privacy • Broken Arrow Affair – Wal-Mart in Broken Arrow, OK and Procter Consumer Privacy • Broken Arrow Affair – Wal-Mart in Broken Arrow, OK and Procter & Gamble in Cincinnati, OH - 750 miles away from each other – Wal-Mart placed technology in stores so that researchers from P&G could detect when Max Factor Lipfinity lipsticks were removed from the shelves – Once taken from the shelf, a video monitor evaluated how consumers handled the product without their knowledge Hildner, Laura. (year unknown) “Defusing the Threat of RFID: Protecting Consumer Privacy Through Technology-Specific Legislation at the State Level”, Harvard Civil Rights-Civil Liberties Law Review, Vol. 41; pg. 133, 44 pgs. 49

Consumer Privacy Concerns: • Increased threat of identity theft, and lack of safeguards to Consumer Privacy Concerns: • Increased threat of identity theft, and lack of safeguards to protect people’s identities. • According to Cohen, “the average American is in at least 50 databases… and that’s just counting commercial databases” Razzouk, N. , Seitz, V. , and Nicolaou, M. (Spring 2008), “Consumer Concerns Regarding RFID Privacy: An Empirical Study”, Journal of Global Business and Technology. Vol. 4, Iss. 1; pg. 69, 10 pgs. 50

The Informed Patient – Hospitals are relying on electronic tracking systems • to keep The Informed Patient – Hospitals are relying on electronic tracking systems • to keep tabs on equipment and lab specimens – EKG monitors and ventilators so they can readily be located in an emergency – Surgical sponges so they don’t get sewn up inside patients • to monitor the location of patients and staff. – Tagging arriving patients to cut waiting times in emergency rooms – Tracking employees to help supervisors move them to understaffed areas Landro, Laura. (2008), The Informed Patient: The Hospital Is Watching You”, Wall Street Journal. (Eastern Edition), Nov 12, 2008. pg D. 1. 51

The Informed Patient • Study published in 2008 in the Journal of the American The Informed Patient • Study published in 2008 in the Journal of the American Medical Association (JAMA) warned that systems using high-frequency radio waves could interfere with the functioning of medical devices. – Could stop a hospital pump from operating – Switch off a ventilator – Interfere with a pacemaker “If the risk of patient harm is one in a million but the benefit of using the technology prevents harm to every patient, the hospital needs to carefully assess the balance”. – John Halamka, CIO at Boston’s Care. Group Health Systems 52 Landro, Laura. (2008), The Informed Patient: The Hospital Is Watching You”, Wall Street Journal. (Eastern Edition), Nov 12, 2008. pg D. 1.

The Informed Patient • Number of hospitals in recent years began using RFID tags The Informed Patient • Number of hospitals in recent years began using RFID tags in maternity units to prevent baby kidnappings. • In Shawnee Mission, Kansas, a system installed in 2000 would experience from cellphones interference and electrical storms, setting off as many as 100 false alarms a day. Landro, Laura. (2008), The Informed Patient: The Hospital Is Watching You”, Wall Street Journal. (Eastern Edition), Nov 12, 2008. pg D. 1. 53

Future of RFID • Government use of RFID – Homeland Security – Police Department Future of RFID • Government use of RFID – Homeland Security – Police Department – Correctional Facilities • Verichip • Supermarkets • Other potential uses 54

Government: Homeland Security • Fusion of RFID technology with biometric identification • “Smart Borders” Government: Homeland Security • Fusion of RFID technology with biometric identification • “Smart Borders” – verify and process entry of people • Prevent entrance of contraband, potential terrorist, unauthorized aliens – Entry-exit system • Record arrival and departure of foreign visitors and guests – Non-intrusive inspection technologies • Rapid and more thorough screening of goods – Monitor borders to detect illegal intrusions • Smuggled goods, illegal immigrants Hunt, Daniel, Albert Puglia, and Mike Puglia. RFID A Guide to Radio Frequency Identification. Hoboken, NJ: John Wiley & Sons, Inc, 2007. 55

Government: Homeland Security • Additional Technologies – Vehicle, driver, passenger, and personal identification border Government: Homeland Security • Additional Technologies – Vehicle, driver, passenger, and personal identification border crossing system – Access control for vehicles – Imported goods traceability and security systems – Air cargo, baggage, and passenger control programs 56 Hunt, Daniel, Albert Puglia, and Mike Puglia. RFID A Guide to Radio Frequency Identification. Hoboken, NJ: John Wiley & Sons, Inc, 2007.

Government: Police • Evidence Handling – More effective means of recording, locating, and tracking Government: Police • Evidence Handling – More effective means of recording, locating, and tracking evidence – Send notifications or sound alerts if evidence is removed from its secure location or if handled by an unauthorized person Crime • Property – Identify and recover stolen merchandise • Easier to catch thieves and prevent them from selling stolen goods – Identify counterfeit merchandise • RFID tags are very difficult to forge or copy Hunt, Daniel, Albert Puglia, and Mike Puglia. RFID A Guide to Radio Frequency Identification. Hoboken, NJ: John Wiley & Sons, Inc, 2007. 57

Government: Police • “Smart guns” – 2004 Applied Digital Solutions partnered with gun manufacturer Government: Police • “Smart guns” – 2004 Applied Digital Solutions partnered with gun manufacturer FN Manufacturing to produce and RFID enabled gun • If RFID chip implanted in officer’s hand matches with a scanning device inside the handgun the trigger unlocks 58 Hunt, Daniel, Albert Puglia, and Mike Puglia. RFID A Guide to Radio Frequency Identification. Hoboken, NJ: John Wiley & Sons, Inc, 2007.

Government: Correctional Facilities • Alanco Technologies TSI Prism RFID tracking system – 5 components: Government: Correctional Facilities • Alanco Technologies TSI Prism RFID tracking system – 5 components: 1. Tamper detecting wristwatch transmitter for inmates 2. Belt-mounted transmitter worn by prison staff 3. Strategically placed array of receiving antennae 4. Computer system 5. Proprietary application software 59 Hunt, Daniel, Albert Puglia, and Mike Puglia. RFID A Guide to Radio Frequency Identification. Hoboken, NJ: John Wiley & Sons, Inc, 2007.

Government: Correctional Facilities • 1999 operational TSI Prism system installed in a Calipatria, CA Government: Correctional Facilities • 1999 operational TSI Prism system installed in a Calipatria, CA minimum-security prison • By 2002 successfully completed 90 day testing program (California Dept of Corrections) • Results: 1 st – Aided in early detection of an escape attempt resulting in inmate’s capture in 1 hr 30 min – Accurately identified participants in an inmate assault – Successfully resisted inmate attempts to tamper with system – Provided a continuous headcount at 2 sec intervals, reduced staff time requirements, readily identified officers and their locations when a duress alarm went off 60 Hunt, Daniel, Albert Puglia, and Mike Puglia. RFID A Guide to Radio Frequency Identification. Hoboken, NJ: John Wiley & Sons, Inc, 2007.

Veri. Chip • www. verichipcorp. com • Video: http: //www. youtube. com/watch? v=Lvd 6 Veri. Chip • www. verichipcorp. com • Video: http: //www. youtube. com/watch? v=Lvd 6 mb 1 C o. BQ (1: 20 -end) • Only FDA approved implantable RFID chip for humans • Uses include: – Patient identification – Infant protection – Wander protection 61 www. verichip. com, viewed April 2, 2009

Supermarkets • http: //www. youtube. com/watch? v=eob 5 32 i. Epqk • Speedier checkout Supermarkets • http: //www. youtube. com/watch? v=eob 5 32 i. Epqk • Speedier checkout 1 • Contaminated foods can be easier and faster 2 tracked 1. Loebbecke, Claudia. Emerging Information System Applications in Brick-and-Mortar Supermarkets: A Case Study of Content Provision and RFID-based implementation. Pacific Asia Conference on Information Systems (PACIS), 2005 2. Gaudin, Sharon. Food Poisoning Outbreaks Could Prove a Boon to RFID. 26 Jan 2009. Computerworld, Vol. 43, Iss. 4, pg. 10. 62

Other Potential Uses • Marketing • Scan the contents of refrigerator or pantry • Other Potential Uses • Marketing • Scan the contents of refrigerator or pantry • Catch shoplifters • Pet door only opens for your pet • Car refuses to start unless YOUR drivers license is detected • Handbag able to scan contents The possibilities are endless… Sutherland, Max. Wake up Call! The Future of RFID is Dawning. Jan 2005. www. sutherlandsurvey. com Gray, Andrew. Spies in Your Shopping Basket? 2004. 63

What does this mean for us as managers… • RFID is all around us What does this mean for us as managers… • RFID is all around us – Car keys – Security • Future of business – Supply Chain Management – Product innovation • As a manager you need to understand the technology to know efficiency how it can save you money and improve • According to a review in 2007 of 12 issues related to the future RFID literature : “Adoption of RFID seems to be a question of when, not if, for most firms. ” Viehland, Dennis & Wong, Aron, “The Future of Radio Frequency Identification”, Journal of Theoretical and Applied Electronic Commerce Research. Curico: Aug 2007. Vol. 2, Iss. 2 pg 74, 8 pgs. 64

References 1. 2. 3. 4. 5. 6. 7. 8. Chen, C. , Wu, J. References 1. 2. 3. 4. 5. 6. 7. 8. Chen, C. , Wu, J. , Sheng Su, Y. , Yang, S. “Key drivers for the continued use of RFID technology in the emergency room. ” Management Research News, Vol. 31, Iss. 4, pg. 273 -288. Chopra, S. and Sodhi, M. (2007), “In Search of RFID’s Sweet Spot”, Wall Street Journal/MIT Sloan. http: //sloanreview. mit. edu/business-insight/articles/2007/1/4913/in-search-of-rfids-sweet-spot/ Finnegan, Bob, Partner of Chronotrack, interviews by phone by Jessica Tipp, April 2, 2009. Gaudin, Sharon. Food Poisoning Outbreaks Could Prove a Boon to RFID. 26 Jan 2009. Computerworld, Vol. 43, Iss. 4, pg. 10. Gaudin, S. (2008), “Some suppliers gain from failed Wal-Mart RFID edict, ” Computerworld. Glasser, D. , Goodman, K. , and Einspruch, N. , (2007), “Chips, tags and scanners: Ethical challenges for radio frequency identification”, Ethics and Information Technology, Vol. 9; 101 -109. Gray, Andrew. Spies in Your Shopping Basket? 2004. Hardgrave, B. ; Langford, S. ; Waller, M. ; and Miller, Rl (2008), “Measuring the Impact of RFID on Out of Stocks at Wal-Mart, ” MIS Quarterly Executive, Vol. 7, No. 4, pgs. 181 -192. Hasselbacher, N. (2008). “RFID: It’s all in the numbers, ” Converting Magazine, Vol. 26, Iss. 12, pg. 38. Hildner, Laura. (year unknown), ”Defusing the Threat of RFID: Protecting Consumer Privacy Through Technology-Specific Legislation at the State Level”, Harvard Civil Rights-Civil Liberties Law Review, Vol. 41; pg. 133, 44 pgs. Hunt, Daniel, Albert Puglia, and Mike Puglia. RFID A Guide to Radio Frequency Identification. Hoboken, NJ: John Wiley & Sons, Inc, 2007. 9. 10. 11. 65

References 12. 13. 14. 15. 16. 17. Krotov, V. (2008), “RFID as a Disruptive References 12. 13. 14. 15. 16. 17. Krotov, V. (2008), “RFID as a Disruptive Innovation, ” Journal of Theoretical and Applied Electronic Commerce Research, Vol. 3, Iss. 2, pg. 44, 16 pgs. Landro, Laura. (2008), “The Informed Patient: The Hospital Is Watching You”, Wall Street Journal. (Eastern Edition), Nov 12, 2008. pg D. 1. Lee, C. , Shim, J. “An exploratory study of radio frequency identification (RFID) adoption in the healthcare industry. ” European Journal of Information Systems: Including a Special Section on Healthcare Information, Vol. 16, Iss. 6, pg. 712 -724. Lieberman, Nancy, Executive Director of Go St. Louis, interviewed by phone by Jessica Tipp, March 26, 2009 Loebbecke, Claudia. Emerging Information System Applications in Brick-and-Mortar Supermarkets: A Case Study of Content Provision and RFID-based implementation. Pacific Asia Conference on Information Systems (PACIS), 2005 Naone, Erica. (2009), “RFID’s Security Problem”, Technology Review. Jan/Feb 2009, Vol. 112, Iss. 1; pg 72, 3 pgs. Sutherland, Max. Wake up Call! The Future of RFID is Dawning. Jan 2005. www. sutherlandsurvey. com Razzouk, N. , Seitz, V. , and Nicolaou, M. (Spring 2008), “Consumer Concerns Regarding RFID Privacy: An Empirical Study”, Journal of Global Business and Technology. Vol. 4, Iss. 1; pg. 69, 10 pgs. Viehland, Dennis & Wong, Aron, “The Future of Radio Frequency Identification”, Journal of Theoretical and Applied Electronic Commerce Research. Curico: Aug 2007. Vol. 2, Iss. 2 pg 74, 8 pgs. Wailgum, T. (2008), “Wal-Mart is Dead Serious About RFID, ” CIO, http: //www. cio. com/article/print/173702, viewed February 25, 2009. Weier, M. (2008), “Wal-Mart Gets Tough on RFID, ” Information. Week, http: //www. informationweek. com/story/show. Article. jhtml? article. ID=205900561, viewed February 25, 2009. Willey, Lorrie. (2007), “RFID and Consumer Privacy: Let the Buyer Beware!”, Journal of Legal, Ethical and Regulatory Issues, Vol. 10, Iss. 2; pg. 25, 13 pgs. 18. 19. 20. 21. 22. 23. 66

References Websites Used: 1. http: //www. law. harvard. edu/students/orgs/crcl/vol 41_1/hildner. pdf, viewed April 17, References Websites Used: 1. http: //www. law. harvard. edu/students/orgs/crcl/vol 41_1/hildner. pdf, viewed April 17, 2009 2. http: //sickfacebook. com/images/facebook_privacy. gif (photo), viewed April 18, 2009 3. http: //travel. state. gov/images/newppt_card. jpg (photo), viewed April 18, 2009 4. http: //www. youtube. com/watch? v=9 Om 7 Ttg. Nlw. M, viewed March 22, 2009 5. http: //www. rfidjournal. com/article/view/1338/1, viewed April 10, 2009 6. http: //www. technovelgy. com/ct/Technology-Article. asp? Art. Num=2, Viewed March 22, 2009 7. http: //www. aimglobal. org/services/RFIDSpotlight. asp, viewed April 10, 2009 8. http: //www. technovelgy. com/ct/Technology-Article. asp? Art. Num=47, www. rfidhut. com/pages/How-much-does-RFIDCost. html, viewed March 22, 2009 9. http: //www. rfidradio. com/? p=16, viewed March 22, 2009 10. www. gostlouis. org, viewed March 20, 2009 11. http: //www. chronotrack. com/home/, viewed March 20, 2009 12. http: //www. youtube. com/watch? v=IB 02 LEq. Qk. LU, viewed April 9, 2009 13. www. barcoding. com/rfid/private/barcoding-inc-RFID-Report. pdf, viewed March 25, 2009 14. http: //www. idtechex. com/research/articles/rapid_adoption_of_rfid_in_healthcare_00000470. asp, viewed April 2, 2009 15. http: www. rfidjournal. com/article. view/3725/2, viewed April 2, 2009 16. http: www. rfidjournal. com/article. view/4581/1, viewed April 2, 2009 17. http: www. rfidjournal. com/article. view/1976/1, viewed April 2, 2009 18. http: //www. rfidnews. org/2008/11/06/walmart-to-require-rfid-tagging-from-chinese-suppliers, viewed February 25, 2009. 19. http: //www. rfidjournal. com/faq/20, viewed March 23, 2009 20. http: //walmartstores. com/About. Us, viewed April 8, 2009 21. 22. www. verichip. com, viewed April 2, 2009 http: //www. youtube. com/watch? v=Lvd 6 mb 1 Co. BQ, viewed April 2, 2009 67