RFID_13 Jean Michel Corrieu_IBM

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    Pervasive / Wireless e-business

    May 25th

    IBM RFID Solutions

    IT Solutions for Business Value

    Jean-Michel CorrieuIBM Europe, Pervasive/Wireless e-Business Technical Sales Manager

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    e-business on demandPage 2

    What is Wireless Computing

    A billion people will interact with

    a million e-businesses via atrillion intelligent interconnecteddevices

    Louis V Gerstner, Jr., 1999

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    e-business on demandPage 3

    Any device

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    Copyright IBM Corporation 2003

    e-BSC La Gaude

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    After decades of technology refinement these radio tags have nowbecome very small and inexpensive

    A great deal of innovation has brought us to the point where the silicon

    core of an radio tag is now 0.4mm

    The antenna can be printed onto a products packaging at time of

    manufacture

    Currently radio tags can be purchased for less that 0.25 in quantity.

    => RFID is small enough, fast enough, and cheap enough to do

    real work with today.

    What makes RFID relevant now?

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    RFID enables End to end IT Solutions (Auto ID drawing)

    32 4 5 6 7 8

    Application

    SystemsRFWrite data

    to RF tagsTrading

    Partner

    Systems

    Read

    Manager

    Transaction

    Data Store

    Items with

    RF TagsReader

    Antenna

    Antenna

    EDI /

    XML

    10

    1Tag/Item

    Relationship

    Database 9

    InternetONS

    Server

    ProductInformation

    (PML Format)In

    tern

    et

    1112

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    Progressing but still not perfect

    Does not work well if the tagged object is made of RF opaque material like metals,several type of liquids, carbon

    RF can penetrate only up to a limited depth of a material. So it may be impossible toread all the case tags of a pallet, even if the cases are made of RF-friendly materials

    The number of tags that can be simultaneously read/written is limited to about 50 100 /

    second

    The following environmental factors can hamper proper reading:- Speed with which the object is moving

    - Human bodies (composed largely of water)

    - Presence of RF interference, moisture and metals

    Tag technology is not mature, intensive research is being conducted both at thetheoretical (e.g., antenna design) and manufacturing (e.g., material used, processingtechniques)

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    RFID: an ENABLER for Business Value Measurable impact to labor costs Real reduction in errors via automation reduction in mis-

    shipments, lost inventory, and errors in redundant data reads Real gains in productivity by better managing the use of skilled

    resources through automation Industry recognized qualitative impacts which returns improved

    customer service, lessened warrantee handling, Driving regulatory impacts through compliance activities to meet

    governmental regulations Automated POS means skilled resources are in front of your

    customers and not behind a cash register

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    Aligning RFID to business strategy is dependant onthe forces that are driving change - multiple factorsinfluence how a particular company might view RFID

    Source: IBM Business Consulting Services analysis

    Meet minimum requirement(e.g. DoD, Walmart)

    Replace or supplementexisting barcode

    systems/applications Increase accuracy and

    decrease error rates ofexisting applications(inventory management, etc.)

    COMPLIANCE

    Increase throughput Reduce labor requirements

    Enable WarehouseManagement

    Enable JITmanufacturing/logistics

    Enable real time decision

    support Provide internal track/trace of

    goods/people

    Automate and speedprocesses (e.g. crossdocking)

    OPTIMIZATION Transformoperating/business models

    Enable new sources ofrevenue

    Enable collaboration withexternal clients/suppliers

    Maintain item historicalrecords (where it has beenand what it has beenthrough)

    Track/Trace goodsthroughout the value chainboth internally and externally

    TRANSFORMATION

    Low

    High

    O

    pportun

    ities&B

    en

    efits

    Low Complexity High

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    Strategic

    How can RFID enable our overall strategicvision?

    Should we be a leader or a fast follower?

    Which trading partners should I pilot withand when?

    How will we operate in a world of dualprocesses? And for how long?

    Financial

    What is the expected return on our RFIDinvestment?

    What specific RFID applications can drivevalue for us?

    What is a realistic adoption pattern/rate ofRFID and how will that impact my businesscase?

    Organizational

    What are the change managementimplications?

    What are the risks involved in an RFIDimplementation?

    Technological

    What are our technology requirements foran RFID implementation?

    What is the architecture that best deliverson my strategic technology plan?

    How will an RFID implementation impactour current applications?

    Developing an RFID strategy Looking for BUSINESS VALUE

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    Extending On Demand e-business systems

    Securely connecting the Physical Plant / Operational Environment tothe IT / Business environment to allow customers to aggregate,

    analyze and act upon data to dynamically adjust operations in

    response to changes in their business environment

    Enable operational control systems to be integrated with Business Knowledge in IT

    Systems, using open standards-based, Next Generation Pervasive Technologies

    Physical

    Environment

    Aggregate

    On Demand

    Infrastructure

    Act

    Analyze

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    RFID across industry sectors

    Industrial

    Field Service

    Healthcare

    Retail/CPG

    Logistics

    RFID Across All Sectors

    Government

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    IBMs Divisions Supporting RFID

    IBM has a matrix, non-hierarchical teaming approach to RFIDResearch

    Solution Development Alliances

    Consulting

    Services RFIDTrained Solution Development

    Alliances

    Software Group

    Sensors &

    Actuators Software Development

    Alliances Standards Bodies

    Industry (S&D, BCS) IGS SWG

    RFID Focussed

    Tech

    Group

    Systems

    Group

    Personal

    SystemsGroup

    Pervasive/

    Wireless EBO

    StrategyThought LeadershipStandards Bodies

    FOAKSolution Development

    WW RFID Focused

    Community

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    IBMs View RFID will deliver value in the context ofcurrent mission critical business processes

    BusinessProcessBusinessProcess

    Websphere Business Integration For Collaboration

    Websphere Business Process Modeling / Workflow

    Websphere Business Integration

    RFID Middleware Server

    WBCGate

    way

    WPSPorta

    l

    ProcessIntegrationArchitecture

    RFID Edge Server

    Db2 IntegratorDB2

    Reader

    Internal Catalog / PIM/PMLItem Master FileOrder Mgmnt System

    RFID Edge Server

    Reader Reader Reader Reader Reader Manageme nt

    Auto-IDEnablement

    Extern

    alCatalog

    /Data

    Pool /

    PML

    Registry

    /ONS

    ExternalDa

    ta

    Acquisition

    P

    artnerCollaboration

    Pa

    rtners

    Exchanges

    SC Planning SC Execution Asset Mgmnt CRM

    Partner PerformanceVMI/SMICPFR/ SC CollaborProduction Planning

    Promotion MgmntAssortment MgMntPrice OptimizationTargetted Marketing

    SC Event MgmntWarehouse MgmntOrder ManagementTrans. Logistics

    SecurityShrink MgmntTrack & TraceCounterfeiting

    Directory

    StrategyServices

    Business

    Case

    Strategy

    Assessment

    Pilot

    Definition

    Auto-IDTags

    Communication& Connectivity

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    IBM laboratories worldwide - 8 research centers focusedon RFID advanced learnings, 3 testing labs

    Almaden Yorktown

    ISL Hawthorne

    Zurich

    ISL Zurich

    Beijing

    Austin Haifa Delhi Tokyo

    IBM RFID Testing LabsGaithersburg

    La Gaude

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    Every container has an integrated passive RFID tag with a unique ID (common across all IBMsites) - know where its been, where its going and its history

    IBM software is used to create and write the ID to all new containers The contents of the container, wafer or recepticle, are associated with the ID in the FactoryControl System's DB2 database

    The transponder is read at every processing step to validate that the correct container andmaterial are going to the correct process tool result

    Challenge

    Solution

    Benefits

    $2.5B Corporate 'from scratch' investment in 300mm Manufacturing and Development. Fishkill

    then made the decision to use RFID after assessing barcode and infra red systems. The plantneeds to use thousands of different active containers for different functions that are transferredfrom storage area, process tools and manufacturing facilities - all of which are very valuable($1K per container holding goods worth ~$2M). Their challenge was to create a real time,common container tracking system

    Fabs moved from infrared systems to RFID allowing real-time vs. point to point tracking of wafercontainers (on average 25 wafers in each container) providing true track/trace capability

    RFID enabled increased efficiency, decreased error rates, and reduced labor requirements RFID systems facilitated prioritization of orders, processing of specialty orders, and order routingduring retooling or maintenance accelerating time to market

    RFID has enabled IBMs 300mm fab to run with 60 to 70 people compared with an industry average of100 to 120, allowing IBM to add value to its products without necessarily adding cost

    With automation enabled by RFID, IBM is able to run the plant with skeleton crew when normally theywould shut it down (e.g. holidays)

    Customer Reference: Supply Chain: IBM Fishkill Plant

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    IBM provided an end-to-end solution that encompasses: Services to support Philips Semiconductors in the STAR proof of concept project approach will be

    delivered during the following project phases (total duration 30 weeks), in particular:Vendor selectionDesign and validationConstruction and testingTargeted launchEvaluation

    Intellectual property services components; IBM proprietary radio frequency identification (RFID)framework and documentation

    IBM software licences:DB2 UDB Enterprise Edition (including one year maintenance)2 Websphere studio application developers for the proof of concept (including one yearmaintenance)

    Solution

    Benefits

    The objective of the project was to help Philips increase inventory turns. The project providesnear real-time inventory visibility to the Philips Semiconductors business units. It will also enable

    changes to policies in production and inventory planning systems which will, in turn, driveincreased inventory turns

    The project is initially between the Philips Semiconductors Kaohsiung (PSK) site and theRegional Distribution Center Hong Kong (RDC HK) on all packaged quantities and boxes, allcustomer direct ships (cartons) in AP from the PSK location, all cartons sent from the RDC HK toall destinations and for EXEL (3PL) all outbound flows in Hong Kong

    This project will help PSC to further optimize its supply chain and is another step in the route tobecome an on demand company. The savings will be used to reinvest in competitive advantage andgrowth.

    Customer Reference: Supply Chain: Philips Semiconductors

    Challenge

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    The U.S. Department of Defense is dedicated to becoming an early adopter of

    Radio Frequency Identification (RFID) technology. The DoD is currently preparingto read RFID tags at key sites within their supply chain. Beginning January 1,2005, the Department of Defense has mandated that all suppliers place passiveRFID tags at the case, pallet, and Defense Department Unique Identifier (UID)item packing level.

    IBM is working with the Department of Defense to:

    Develop test pilot milestones and manage test pilot requirementsCreate project metrics and reporting

    Build a business case analysis of the overall RFID implementation

    Monitor implementation issues and resolution

    Assist in the development and release of RFID business rules

    Establish commercial best practices

    Provide Subject Matter Experts to develop the short term and long termimplementation plan

    Challenge

    IBM seen as trusted brand for US DoD

    Solution

    Benefits

    Solution

    Benefits

    Customer Reference: Supply Chain: US Department of Defense

    Challenge

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    Major field trial in RFID USA

    Step 1 pilot at one DC in compliance with Wal-Mart Mandate

    Integrated to WMS

    Step 2 roll-out in 2004 to more DCs (5 to 30)

    IBM chosen as RFID System Integrator and RFID Software Infrastructure andApplications Provider

    Solution uses Alien UHF tags and readers and Zebra and Printronix printers

    Challenge

    Different RFID Use CasesRFID Picking/LabellingRFID Goods Outbound

    Order verification at case levelLoad verification

    Solution

    Benefits

    Challenge

    Solution

    Benefits

    Customer Reference: Supply Chain: Sara Lee

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    Deliver Business Value

    Focus on key industries

    Develop end-to-end solutions

    Provide Consulting, Integration and ProfessionalServices

    Leverage IBM and non IBM Components

    Build a strong RFID ecosystem of PartnersSupport and drive open standards

    In Short, How do we Help Companies :

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    The Yankee Group ranked IBM # 1 inMarch 2003

    IBM ranks first among the enablers of

    enterprise mobile computing solutions

    IBM also boasts the most successful

    professional services business (IBM

    Global Services) in the mobile computing

    space

    A mid-2002 IDC report shows IBM andPwCC Wireless jointly have close to a

    30% market share, and whencombined, are over 5 times the nearest

    competitors.

    IBM Global Services (IGS) is by far the

    leading provider of mobile and wireless

    professional services. One could beshocked by seeing how far ahead IGS is

    IBM: a leader in mobile and wireless computing

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    AMR Recent assessment of IBM

    January 2004 release with Metro on Store of the Future and IBM'sinvolvement

    IBM--The overall systems integrator on the project, IBM is providingstrategic direction, consulting, and implementation expertise. It will

    also establish an RFID lab in Germany to test supplierinteroperability in all stages of the initiative.

    The Takeaway: IBM is emerging as the leader in RFID

    integration and consulting services.

    http://www.amrresearch.com/Content/view.asp?pmillid=16933