RFID needs a clear business goal, firms warned

IDC says firms should not get carried away with technology hype

Organisations must be aware of the impact RFID will have on business processes, and should avoid implementing such projects for technology’s sake, warns researcher IDC.

Martin Haas, IDC consulting director, advised delegates at a Siemens RFID conference in Berlin last week against blindly following RFID hype.

‘The effect of RFID projects on business processes should not be overestimated,’ he said. ‘RFID data must be able to feed into back office systems. It is a complex project because the technology has to be integrated into the business processes.’

Haas says businesses must consider the entire RFID ecosystem at business process, enterprise application and system integration level, as well as at the RFID technology level.

The technology is still in its infancy and presents several challenges, such as cost, performance capabilities, standardisation, data security and data and consumer protection issues.

Haas says businesses considering an RFID project should start with an internal programme.

‘Start within the company, so if there are any faults it will not affect customers and suppliers, and then expand it to suppliers,’ he said.

Herbert Wegmann, sector manager for RFID at Siemens Automation and Drives division, says businesses must be prepared to change processes. ‘You must ask at what point of the process RFID can help before embarking on a project,’ he said.

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