Microsoft RFID Industry Focus Microsoft RFID Vision

Microsoft RFID Industry Focus

Microsoft RFID Vision Deliver low cost, innovative, standards-based RFID systems that are easy to deploy and manage • Create an ecosystem for scalable, deployable, lowest cost business solutions powered by RFID • Deliver Microsoft Platform to enable business applications – – Lowest TCO Inclusive (RFID, Barcodes, EPC, GTIN, etc. ) Hardware agnostic Scalable, Deployable, Extensible • Develop business solutions for SMB • Support and participate in standards development and deployment – – EPC Global (UCC, EAN) Others (ISO, AIAG…)

Requirements of the Platform • Comprehensive, extensible programming model and tools • Easy to deploy and manage • Secure – by default • Reliable – available, fault-tolerant • Scalable – up and out • Rich, consistent user experience (IT Pro, Developer, Business User) • Componentized functionality but “better together” • Integration with existing systems

Microsoft & RFID Views • RFID compliance is an increasing priority for Enterprise customers • Businesses are looking for complete RFID enabled solutions • Partners are looking for an enabling platform • Item level adoption • Standardization and privacy concerns must be addressed to facilitate rapid adoption RFID Engagement • RFID deployments at major retailers • Engaged in many pilots with partners • EPC Global Membership • RFID Partner Council • Architectural guidance for ITPros and Business Architects RFID Strategy • Partner driven strategy for enterprise customers • Provide the base platform: Windows Server, SQL Server, Biz. Talk Server, XML Web. Services, Win. CE & XPe • RFID enable Platform for partners to develop business solutions • RFID enable Microsoft Business Solutions for SMB

RFID Vertical Industry Solutions

RFID in Retail Pallet & Case Level • Most of the early adoption • Product visibility across the supply chain • Smarter operations, operational efficiencies • Inventory reduction • Product availability in stores, backrooms, DCs Item level scenarios • Product availability on the store shelf • Item level inventory visibility at the store level • Smarter Shopping, customer convenience • Customer service, service errors (pharmacies)

RFID in Retail – innovation at the edge of the enterprise – The Future Store l l l l Merchandise Supply Chain l e. POS Self Checkout Unattended Checkout Electronic Signage Digital Assistants Smart Shelves Cross-Channel integration RFID Consumers Core Operations l l l Closed Loop Systems for Synchronizing Supply and Demand Information Transparency Across Trading Partners RFID l l l ERP Merchandising Systems Inventory Management Promotions Management Traditional Replenishment Systems Human Resource Systems Labor Management Enterprise Data Warehousing l l Multi-Channel Shopping (shop online/buy offline) Assisted Shopping Personal Digital Assistants Mobile/Wireless. Enabled

RFID in Life Sciences Clinical Development Clinical trials and materials management Avoiding medical errors Dosing and protocol compliance Forms completion / data integration Lab sample tracking Medical device status, management, data interchange (“life of a device”) Sales & Marketing Anti-theft and shrinkage management Product tracking and distribution compliance Anti-counterfeit and fraud detection Shipping and inventory management Regulatory compliance Manufacturing & Supply Chain Public Product Use Dosing compliance Labeling Dosing information/reference Product history/genealogy Improper importing/exporting Shipping and inventory management Product recall Improper importing/exporting Manufacturing execution/efficiency Quality management Maintenance management

RFID in Pharmaceutical Industry Business Benefits EPC Drivers • Ability to identify individual bottles, containers of Rx • Remotely track movement and location of drugs • Provide assurance that the ID on the Rx has not bee forged • Reduce gray market sales • Increase efficiency of clinical trial by reducing start up delays, reduce trial errors and trial dropouts • Rx counterfeit – 88% seized Rx are not approved US use • 40% Rx made in Mexico, Argentina, Colombia, India, China, may be counterfeit • Inventory management • Regulatory compliance • Product return, recalls

Arenas of Excellence RFID Center of Excellence

RFID Showcase Arena Manufacturing Efficient use of capital • Embedded tracking • Location tracking • Condition • Raw material / goods receiving • VMI • Fixed Asset Management • Tools, Shelf Mgmt • Distribution Cycle time, Labor cost reductions • Receiving, Put away • Pick, Pack, Trace • Asset management • Warehouse management • Smart shelves • Fork lifts Retail Out of stock / Inventory Mgmt • Back room receiving • Product Availability • Smart Shelves • Product information • Planogram planning • Assortment • Automatic payments • Loyalty cards Consumer Convenience • Returns • Warranties • After sales • Home appliances • Assisted living • Asset management • Insurance • Recycling Full-scale supply chain scenarios – – Manufacturing – Raw material goods receiving, WIP replenishment Distribution – Warehouse Management, pick, pack, trace and putaway Retail – Smart Shelves, POS, loyalty cards, planogram compliance Consumer– Returns and warranties, recycling and disposal

RFID Technology Arena Research New Technology Concepts • Tag IDs and numbering • Air protocols • Advanced Tag Capabilities • Software APIs • Security Hardware Tags and Readers • Interoperation across vendors • Compliance with standards • Interference and noise • Singulation Platforms RFID Server and Infrastructure • Device driver development • Event data conditioning • Reader management Applications Interface and Deployment • Architecture standardization • API definition and refinement • Needs analysis • Privacy • Research and technology development • Bring components and people together • Develop shared understanding of issues

RFID Roundtable Working Groups Shared Vision • General areas of technology • Special topics of focused interest • Whitepapers • Draft standards proposals • Scenario planning Education Empowerment Through Knowledge • Symposia • Formal courses and hands-on workshops • Self-study materials • Speakers’ bureau • Partners in Thought Leadership • Partners in Technology • Partners in Business Community Action in Partnership • Outreach to industry and consumers • Rants and Raves • Review standards proposals • Partnership in standards bodies • Planning for the Center of Excellence

TAP & EAP here in Taiwan • Technical Alliance Program (TAP) and Early Adopter Programs (EAP) • A coordinate group of programs to offer a wide range of services to our Customers and Partners. • Working on Hardware and Hardware interface solutions. • Integrated Software solutions. • Bridging these two realms together. • Full support from Corporate product teams for these programs here in Taiwan.

Conclusion: Microsoft’s Value Add • Provides Flexible RFID Platform • Provide linked solutions between existing systems and RFID • Modify existing system to an RFID Enabled one. • Extensive Partner Network • Fast Time-To-Market Solutions • Real-World Experience

© 2003 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.