Clamor Around 5 Cent Tags For RFID Compliance Overshadowing Bigger Issues, Says ABI Research.Business Editors/High-Tech Writers OYSTER BAY Oyster Bay, uninc. area (1990 pop. 6,687) of the Town of Oyster Bay, Nassau co., SE N.Y., on N Long Island, on Long Island Sound; settled 1653. It is chiefly residential. , N.Y.--(BUSINESS WIRE)--April 7, 2004 Recent rumblings in RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. -- a market brought into the limelight with Wal-Mart's mandate announcement last June -- have centered on RFID tags becoming available at a price point of five cents in large volumes. But the clamor around the "five cent tag" is overshadowing more important issues in the RFID space, says technology research firm ABI Abi (ā`bī) [short for Abijah], in the Bible, King Hezekiah's mother. (Application Binary Interface) A specification for a specific hardware platform combined with the operating system. Research. "Five cent tags are a component to the overall success of RFID but they are not one of the top five most important elements," says Erik Michielsen, ABI Research principal analyst covering RFID. "Without proper commitment, planning, and partnering, cheap RFID hardware is not sufficient to make a sustainable long-term difference with consumer packaged goods Noun 1. packaged goods - groceries that are packaged for sale foodstuff, grocery - (usually plural) consumer goods sold by a grocer plural, plural form - the form of a word that is used to denote more than one suppliers looking to benefit from RFID." Compliance with mandates requires that companies invest in RFID regardless of tag costs. As a result, many companies have embraced cheap tags as a way to reduce compliance costs. Some companies have adopted a delaying strategy solely in hopes that tag prices will decrease. Non-RFID compliance with Wal-Mart's January 1, 2005 deadline is not a win-lose scenario. RFID is not Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 . Recent pro-compliance concerns from Deloitte, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , and others have merit in that they promote RFID understanding; however, pro-compliance efforts for the sake of compliance alone may prove more hurtful than helpful in forging a stronger relationship with Wal-Mart and other retail giants. "Commitment trumps compliance," adds Michielsen. Mandates such as Wal-Mart's provide RFID rollout incentives, but a structured RFID strategy built around creating internal and external awareness and commitment is absolutely critical to creating agile organizations that can embrace the seismic changes RFID will present to suppliers and industry relationships over the next decade. Approaches and insights to these business issues are addressed in ABI Research's RFID Quarterly Subscription Service. The service follows the technologies for RFID applications, including asset management, supply chain management, and point-of-sale, and also covers RFID standards, applications, and vertical markets. Selected RFID vendors, integrators, developers, and IC manufacturers are profiled, along with their various technologies and product offerings. About ABI Research Founded in 1990 and headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , ABI Research maintains global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. that support annual research programs, quarterly intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. Their market research products can be found on the web at www.abiresearch.com, or by calling 516.624.3113. |
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