IBM RFID Executive Presentation

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Aug 7, 2012 (4 years and 11 months ago)

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Pervasive / Wireless e
-
business

May 25th

IBM RFID Solutions

IT Solutions for Business Value



Jean
-
Michel Corrieu

IBM Europe, Pervasive/Wireless e
-
Business Technical Sales Manager


e
-
business on demand

Page
2

What is Wireless Computing

“A
billion

people will interact with
a
million
e
-
businesses via a
trillion

intelligent interconnected
devices”



Louis V Gerstner, Jr., 1999

e
-
business on demand

Page
3

Any device










© Copyright IBM Corporation 2003

© 2004 IBM Corporation

e
-
BSC La Gaude


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4

4


After decades of technology refinement these radio tags have now
become 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 product’s 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?


© Copyright IBM Corporation 2003

© 2004 IBM Corporation

e
-
BSC La Gaude


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5

5

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

3

2

4

5

6

7

8

Application
Systems

RF

Write data
to RF tags

Trading
Partner
Systems

Read

Manager

Transaction

Data Store

Items with
RF Tags

Reader

Antenna

Antenna

EDI /

XML

10

1

Tag/Item
Relationship
Database

9

Internet

ONS
Server

Product
Information
(PML Format)

11

12

© Copyright IBM Corporation 2003

© 2004 IBM Corporation

e
-
BSC La Gaude


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6

6

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 to read all the case tags

of a
pallet
,

even if the cases are made of
RF
-
friendly materials



T
he 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 the
theoretical (e.g., antenna design) and manufacturing (e.g., material used,
processing techniques)



Pervasive / Wireless e
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business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

7

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

Pervasive / Wireless e
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business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

8

Aligning RFID to business strategy is dependant on
the forces that are driving change
-

multiple factors
influence how a particular company might view RFID


Source: IBM Business Consulting Services analysis


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


Replace or supplement
existing barcode
systems/applications


Increase accuracy and
decrease error rates of
existing applications
(inventory management, etc.)

COMPLIANCE


Increase throughput


Reduce
labor requirements


Enable Warehouse
Management


Enable JIT
manufacturing/logistics


Enable real time decision
support


Provide internal track/trace of
goods/people


Automate and speed
processes (e.g. cross
docking)

OPTIMIZATION


Transform
operating/business models


Enable new sources of
revenue


Enable collaboration with
external clients/suppliers


Maintain item historical
records (where it has been
and what it has been
through)


Track/Trace goods
throughout the value chain
both internally and externally

TRANSFORMATION

Low

High

Opportunities & Benefits

Low

Complexity

High

Pervasive / Wireless e
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business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

9

Strategic


How can RFID enable our overall strategic
vision?


Should we be a leader or a “fast follower”?


Which trading partners should I pilot with
and when?


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


Financial


What is the expected return on our RFID
investment?


What specific RFID applications can drive
value for us?


What is a realistic adoption pattern/rate of
RFID and how will that impact my business
case?

Organizational


What are the change management
implications?


What are the risks involved in an RFID
implementation?


Technological


What are our technology requirements for
an RFID implementation?


What is the architecture that best delivers
on my strategic technology plan?


How will an RFID implementation impact
our current applications?

Developing an RFID strategy


Looking for BUSINESS VALUE

e
-
business on demand

Page
10

Business Value

Innovative

business designs

that sharpen focus

and accelerate
growth

Integrated, end
-
to
-
end business
processes that are built to change

Based on real customer cases with
real business processes

An IT operating
environment
optimized for
flexibility and
resilience

Business

Transformation

On Demand

Operating

Environment

Business

Transformation

11

This IBM Statement of Direction, while subject to change, is intended to describe our planned product line in the RFID space,

ba
sed upon market trends and IBM’s perceived customer needs.

Extending On Demand e
-
business systems



Securely connecting the Physical Plant / Operational Environment to
the 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

Pervasive / Wireless e
-
business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

12

RFID across industry sectors

Industrial

Field Service

Healthcare

Retail/CPG

Logistics

RFID Across All Sectors

Government

Pervasive / Wireless e
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business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

13

IBM’s Divisions Supporting RFID

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

Research


Solution Development



Alliances

Consulting
Services RFID
Trained



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
Systems
Group



Pervasive/
Wireless EBO


Strategy


Thought Leadership


Standards Bodies


FOAK


Solution Development



WW RFID Focused
Community




Pervasive / Wireless e
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business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

14

IBM’s View


RFID will deliver value in the context of
current mission critical business processes

Business

Process

Business

Process



Websphere Business Integration For Collaboration

Websphere Business Process Modeling / Workflow

Websphere Business Integration

RFID Middleware Server

WBC Gateway

WPS Portal

Process

Integration

Architecture

RFID Edge Server

Db2 Integrator

DB2

Reader

Internal Catalog / PIM/PML

Item Master File

Order Mgmnt System

RFID Edge Server

Reader

Reader

Reader

Reader

Reader

Management

Auto
-
ID

Enablement

External Catalog

/Data Pool/PML

Registry

/ONS

External Data
Acquisition

Partner Collaboration

Partners

Exchanges

SC Planning

SC Execution

Asset Mgmnt

CRM

Partner Performance

VMI/SMI

CPFR/ SC Collabor

Production Planning

Promotion Mgmnt

Assortment MgMnt

Price Optimization

Targetted Marketing

SC Event Mgmnt

Warehouse Mgmnt

Order Management

Trans. Logistics



Security

Shrink Mgmnt

Track & Trace

Counterfeiting



Directory

Strategy

Services

Business

Case

Strategy

Assessment

Pilot

Definition

Auto
-
ID

Tags

Communication

& Connectivity

Pervasive / Wireless e
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business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

15

IBM laboratories worldwide
-

8 research centers focused
on RFID advanced learnings, 3 testing labs

Almaden

Yorktown

ISL Hawthorne

Zurich

ISL Zurich

Beijing

Austin

Haifa

Delhi

Tokyo

IBM RFID Testing Labs

Gaithersburg

La Gaude

Pervasive / Wireless e
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business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

16


Every container has an integrated passive RFID tag with a unique ID (common across all IBM
sites)
-

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 Factory
Control System's DB2 database


The transponder is read at every processing step to validate that the correct container and
material 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 plant
needs to use thousands of different active containers for different functions that are transferred
from 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 wafer
containers (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 routing
during retooling or maintenance accelerating time to market


RFID has enabled IBM’s 300mm fab to run with 60 to 70 people compared with an industry average of
100 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 they
would shut it down (e.g. holidays)


Customer Reference:

Supply Chain:
IBM Fishkill Plant

Pervasive / Wireless e
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business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

17


The Metro Group Initiative has been up and running since April 28, 2003. The
initiative helps Metro track and manage grocery store inventory from the distribution
centre to and within the retail store environment


IBM have provided business consulting, middleware, implementation, hardware
and support.


IBM in collaboration with
Intel and SAP
have been involved in technology
selection and implementation.


Challenge


Metro has decreased misorders and lost inventory due to accurate visibility of inventory
from the distribution centre to the retail store


Real
-
time tracking of retail store inventory helps Metro order new inventory on
-
demand,
reducing “OOS” (out of stock) situations


POS checkout locations are monitored and staff added during peak hours to avoid
customer bottlenecks


Customers have instant access to information about products from kiosks located
through the store, improving customer satisfaction


Dr. Gerd Wolfram, Executive Project Manager, Metro Group Future Store of the Future
says “The tremendous success of the Metro 'Future Store Initiative' is also driven by
IBM's contribution to this innovative project. In particular IBM developed a RFID
Middleware and integrated a complex RFID solution with multiple functions on pallet,
case and shelf level."



Solution

Benefits

Customer Reference: Supply Chain:
M
etro Group

Pervasive / Wireless e
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business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

18


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 selection


Design and validation


Construction and testing


Targeted launch


Evaluation


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 year
maintenance)

Solution

Benefits


The objective of the project was to help Philips increase inventory turns. The project provides
near 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, drive
increased inventory turns


The project is initially between the Philips Semiconductors Kaohsiung (PSK) site and the
Regional Distribution Center Hong Kong (RDC HK) on all packaged quantities and boxes, all
customer direct ships (cartons) in AP from the PSK location, all cartons sent from the RDC HK to
all 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 to
become an on demand company. The savings will be used to reinvest in competitive advantage and
growth.

Customer Reference:

Supply Chain:
Philips Semiconductors


Challenge

Pervasive / Wireless e
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business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

19


The U.S. Department of Defense is dedicated to becoming an early adopter of
Radio Frequency Identification (RFID) technology. The DoD is currently preparing
to read RFID tags at key sites within their supply chain. Beginning January 1, 2005,
the Department of Defense has mandated that all suppliers place passive RFID
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 requirements


Create 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 term
implementation plan

Challenge


IBM seen as trusted brand for US DoD

Solution

Benefits

Solution

Benefits

Customer Reference
:

Supply Chain:
US Department of Defense

Challenge

Pervasive / Wireless e
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business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

20


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 and Applications
Provider

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


Challenge


Different RFID Use Cases

RFID Picking/Labelling

RFID Goods Outbound

Order verification at case level

Load verification

Solution

Benefits

Challenge

Solution

Benefits

Customer Reference
:

Supply Chain:
Sara Lee


Pervasive / Wireless e
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business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

21


Deliver Business Value


Focus on key industries


Develop end
-
to
-
end solutions


Provide Consulting, Integration and Professional
Services


Leverage IBM and non IBM Components


Build a strong RFID ecosystem of Partners


Support and drive open standards


In Short, How do we Help Companies :

Pervasive / Wireless e
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business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

22

The Yankee Group ranked IBM # 1 in
March 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 and
PwCC Wireless jointly have close to a
30% market share, and when
combined, 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 be
shocked by seeing how far ahead IGS is”

IBM
: a leader

in
mobile

and
w
ireless
computing

Pervasive / Wireless e
-
business

Emerging Markets


Pervasive/ Wireless EBO

© 2004 IBM Corporation

23

AMR Recent assessment of IBM


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



IBM
--
The overall systems integrator on the project, IBM is providing
strategic direction, consulting, and implementation expertise. It will
also establish an RFID lab in Germany to test supplier
interoperability 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