RFID & E-BUSINESS

INTRODUCTION
Radio-frequency identification (RFID) is an automatic identification method, relying on storing and
remotely retrieving data using devices called RFID tags or transponders. RFID is the use of a wireless
non-contact system that uses radio-frequency electromagnetic fields to transfer data from a tag
attached to an object, for the purposes of automatic identification and tracking. Some tags require no
battery and are powered by the electromagnetic fields used to read them. Others use a local power
source and emit radio waves (electromagnetic radiation at radio frequencies). The tag contains
electronically stored information which can be read from up to several meters (yards) away. Unlike a bar
code, the tag does not need to be within line of sight of the reader and may be embedded in the tracked
object. Since RFID tags can be attached to clothing, possessions, or even implanted within people, the
possibility of reading personally-linked information without consent has raised privacy concerns. RFID is
also called dedicated short range communication (DSRC).

HISTORY OF RFID
It is invented in 1948 by Harry Stockman. Its initial application was during World War II. The United
Kingdom used RFID devices to distinguish returning English airplanes from inbound German ones. It
came into commercial use only in 1990s. In 2003, Wal-Mart first told suppliers that they would be
required to put RFID tags on products shipped to their distribution centers and stores by 2005.

RFID TECHNOLOGY
RFID is not a new technology. It is very similar to the barcodes. Since all the different business required
to share the information about the product, each unit was required to read a common code. RFID uses
EPC (Electronic Product Code) that is very similar to barcodes. This EPC is a unique number associated
with each RFID tags.

The EPC number on the tag is unique, but all the EPC systems run a protocol called, EPC protocol. The
EPC protocol specifies two things
1) How to separate and store information in the tags. This is called the numbering scheme.
2) Decide how the tags and the readers communicate.
The RFID system consists of a RFID reader, RFID tag and an antenna. The antenna is a passive device and
is required only to send and receive the signals efficiently. The essential components of RFID system are
RFID reader and RFID tag. The essential of RFID system is the communication between the RFID reader
and the tags over the air interface at a particular frequency. Figure 1 below shows all the basic
components of an RFID system.


Figure 1 RFID tags, reader and an antenna.

a) RFID reader:
RFD reader is actually a transreceiver. It sends as well as receives the signals. It radiates signals via the
antenna over the air at a particular frequency. Those signals are received by the tag and the tag sends
back the response. RFID reader then receives this response.

b) RFID tag:
RFID tags are the main component in the RFID system. The RFID tags are made up of a chip or an
Integrated Circuit (IC). The chip has the unique EPC on it. The chip also has the logic to take a particular
action when it is in front of the receiver. There are two types of tags i) Active tags and ii) Passive tags.

i) Active tags:
Because they have their own power source, active tags transmit a stronger signal, and
readers can access them from further away. The on-board power source makes them larger
and more expensive, so active RFID systems typically work best on large items tracked over
long distances. Low-power active tags are usually slightly larger than a deck of playing cards.
Active tags can remain dormant until they come in range of a receiver or can constantly
broadcast a signal. Because of their on-board power source, active tags operate at higher
frequenciescommonly 455 MHz, 2.45 GHz, or 5.8 GHzdepending on the applications
read range and memory requirements. Readers can communicate with active RFID tags
across 20 to 100 meters. They are capable of storing 128 kb data.


ii) Passive tags:
Passive tags, on the other hand, are very inexpensive; they can cost as little as 20 cents
apiece, and new technologies are constantly making them cheaper to integrate into
common materials and products. Because passive tags are inexpensive, they will likely be
the basis of most of the growth in RFID implementations. In addition to their low cost,
passive tags can also be quite small. Current antenna technology limits the smallest useful
passive tag to about the size of a quarter. The larger the tag, the larger the read range.
Currently, passive RFID tags contain about 2 Kbits of memory. This is too small to hold much
more complex information than identification and history information. The technology
behind RFID is constantly improving, so the amount of information and capabilities of RFID
tags will increase over time, allowing RFID tags to eventually contain and transmit much
more information.
A passive-tag reader can constantly broadcast its signal or broadcast it on demand.
When a tag comes within the readers range, it receives an electromagnetic signal from the
reader through the tags antenna. The tag then stores the energy from the signal in an on-
board capacitor, a process called inductive coupling. When the capacitor has built up enough
charge, it can power the RFID tags circuitry, which transmits a modulated signal to the
reader. That return signal contains the information stored in the tag.
They do not need any power supply. Instead they gather power from
electromagnetic field generated by the waves from the reader.





Further the tags are classified in Class 0 and Class 1. Class 0 tags are read only type. The information
once written on them cannot be modified. One has to use the number written by the manufacturer.
Class 1 tags are tags are programmable. Usually they are of the type WORM (write once, read many).
Depending upon the manufacturer, the tags can store 64 96, 128, 256 or 512 bytes of data. Also
depending on the class and generation of the tags, data on it can be encrypted.

The traditional barcodes uses what is called UPC (Universal Product Code). A UPC scheme is shown
below in Figure 2.


Figure 2 The UPC scheme in barcode.

In UPC scheme, the empty spaces and the black lines holds the data. These lines actually represent a
UPC generic number. The UPC number code consists of 4 parts. The first part is a single digit and
represents the numbering system that is followed. The second part consists of 5 digits and is the
manufacturer ID number. This is unique for each manufacturer. The next 5 digits represent the item
number and the last digit is the module check character that works pretty much like checksum. All these
parts are shown in Figure 2.
RFID uses EPC (Electronic Product Code). This is shown below in Figure 3.


Figure 3 The EPC scheme used by RFID.
The EPC can store a lot more information compared to that of UPC. The EPC scheme consists of 4 fields.
The first field is of 8 bits and is called the Header field. It tells the reader of the type of numbers that
follows. The next field is of the EPC manager and represents the company name. The next field is the
object class and represents the type of an item. The last field is the serial number and represents the
serial number of the item that is represented by the object class field.

The total length of EPC number is 96 bits and this is a very large number and that number will never be
repeated. Hence each tag has a unique number.

COMPLEMENT TO BARCODE
RFID tags are often a complement, but not a substitute, for UPC or EAN barcodes. They may not ever
completely replace barcodes, due in part to their higher cost and the advantage of multiple data sources
on the same object. Also, unlike RFID labels, barcodes can be generated and distributed electronically,
e.g. via e-mail or mobile phone, for printing or display by the recipient. An example is airline boarding
passes. The new EPC, along with several other schemes, is widely available at reasonable cost.
The storage of data associated with tracking items will require many terabytes. Filtering and categorizing
RFID data is needed to create useful information. It is likely that goods will be tracked by the pallet using
RFID tags, and at package level with Universal Product Code (UPC) or EAN from unique barcodes.

RFID Barcode
Forging is difficult Forging is easy
Scanner not required. No need to bring the tag
near the reader
Scanner needs to see the bar code to read it

RFID is comparatively fast Barcode is comparatively slow
Can read multiple tags at a time Can read only one tag at a time
Relatively expensive as compared to Bar Codes
(Reader 1000$, Tag 20 cents a piece)

Can be reusable within factory premises Cannot be reused



APPLICATION OF RFID IN E-BUSINESS

Asset management
RFID tags can be automatically read at the dock door as they leave with an outgoing shipment.
By matching the reading with specific shipment information in a database, manufacturers could
automatically build a record of what specific shipping containers were sent to each customer.
This information could be used to document cycle times, improve returns and recoveries and aid
in disputes with customers about lost or damaged assets.
Production Tracking
The Auto-ID Center study found manufacturers can reduce their working capital needs
between 2% and 8% by taking advantage of RFID to provide greater visibility into work-in-
process tracking and materials inventory.
By applying RFID tags to subassemblies in the production process, rather than to finished
goods, manufacturers can gain accurate, real-time visibility into work-in-process in
environments where bar codes are unusable.
Industrial control and material handling systems can integrate with RFID readers to identify
materials moving down a production line and automatically route the items to the
appropriate assembly.

In Supply Chain Management
RFID tags are used to track products throughout the supply chain
RFID basically serves as a replacement for the bar code scanners used to track products
and shipments in similar ways.
There are two main problems in the traditional SCM,
i>Ripple Effect
mainly due to the delay of a particular activity which results in the delay of the whole
SCM
ii>Bullwhip Effect
caused by the demand uncertainty in the supply chain
RFID technology can overcome these shortcomings of the traditional SCM and improve
its efficiency.

Inventory Control
Readers covering warehouse racks, shelves and other storage locations could
automatically record the removal of items and update inventory records.
If an item was misplaced or needed urgently to complete an order, fixed-position
readers or a worker with a mobile computer and RFID reader could automatically search
for the item by reading for its specific ID number.
To secure inventory from theft and diversion, readers could be set to sound alarms or
send notification if items are placed in unauthorized areas of the facility or removed
from storage without prior approval.

Transportation & Logistics
Logistics and transportation are major areas of implementation for RFID technology.
Yard management, shipping and freight and distribution centers use RFID tracking
technology. In the railroad industry, RFID tags mounted on locomotives and rolling stock
identify the owner, identification number and type of equipment and its characteristics.
This can be used with a database to identify the lading, origin, destination, etc. of the
commodities being carried.
In commercial aviation, RFID technology is being incorporated to support maintenance
on commercial aircraft. RFID tags are used to identify baggage and cargo at several
airports and airlines. Some countries are using RFID technology for vehicle registration
and enforcement. RFID can help detect and retrieve stolen cars.

Promotion tracking
To prevent retailers diverting products, manufacturers are exploring the use of RFID tags on
promoted merchandise so that they can track exactly which product has sold through the supply
chain at fully discounted prices.

Movement Tracking
Because moving objects can easily carry RFID tags, a common use is to track the movement of
people and the information associated with them. In the same way, tags can track the
movement of highly mobile objects in areas other than an organizations supply chain.


INITIATIVES IN RFID
Cognizant has successfully deployed a RFID asset-tracking system at one of its primary data
centers located in Kolkata. The company installed readers in the data center racks and attached
RFID tags to the servers, network gears, laptops and other assets.
Patni Computer Systems Lab Implemented Animal Tracking System
IBM is deploying RFID technology on name tags worn by attendees that automatically tracks
their session and meal attendance.
Infosys Technologies RFID consulting on logistics player in the RFID space.
TCS have tied up with Hyderabad University to produce RFID tagged mark sheets & degrees to
determine use of fake degree.
Wipro Technologies - Member of the Electronic Product Code (EPC)
- Setting up a lab to study RFID
- Working on pilot projects



FUTURE SCOPE
The potential future developments of RFID include:
Self-service (mobile) automated stores
The store may become entirely selfservice, thanks to RFID tags on the items, RFID readers at the
point-of-sale terminals, self-locking doors and cameras. For example, Laxbutiken in Sweden
already operates self-service convenience stores where customers can package food and
beverages. This type of retail format may be especially interesting for extending store opening
hours around the clock without requiring extra store staff and to empower franchising business
models, based on the availability of prepackaged self-service stores. Options can include mobile
pre-fabricated self-service stores that can be moved to different locations. Foreseeable concerns
around the potential development of fully automated self-service stores include consumers'
privacy, dealing with emergency situations and impact on workforce composition.

Contact-less payments
Enabling speedier transactions for customers and enterprises in high-traffic, low-value
transactions, making the retail industry the ideal candidate for this application scenario. ETSI
(the European Telecommunications Standards Institute) approved in February 2008 a key NFC
handset standard (ETSITS 102 622 V7.0.0) 'to host secure applications on the SIM and to
communicate with the outside world in a contactless manner using the NFC chip in the phone'
(Source: ETSI). Nineteen million contactless payment cards are currently in circulation in the
United States (Source: Aite Group) and in Europe contactless payments are mostly used in the
transportation industry (for example, 10 million passengers in London use the Oyster RFID-
based contactless smart card, approximately 300,000 OV cards were distributed in the
Netherlands as of April 2007, Moscow Metro deployed an RFID-ticketing system in February
2007 and the urban transport authority in Frankfurt is currently implementing NFC-enabled
contactless payments from mobile phones).

Incorporation of RFID directly into products' packaging
RFID can be used for recycle auto-sorting, thus making it a potentially interesting technology to
improve the efficiencies of recycling disposable packaging. On the standardization side,
ISO/PRF 17366 - Supply chain applications of RFID - Product packaging is currently registered
for formal approval. RFID tags embedded into products' packaging can also improve system
performance, for example Proctor & Gamble changed the package design for its Gillette Fusion
razors so that the packaging itself could become more RF-friendly. Taking into account the
expected uptake in RFID-based product pedigree solutions discussed above, embedding RFID in
product packages may also be a more cost-effective solution to ensure product authenticity. For
example Rexam, a large consumer packaging manufacturer, already produces RFID bottles for
pharmaceutical applications.

CONCLUSION
RFID is famous and widely used because it is very cheap. In most of the cases, passive RFID tags are
used. But passive tags have limited power and limited computational resources. This puts security at
stake. It is difficult to implement security features in limited resource system. Hence even though RFID is
widely used, RFID systems can easily be attacked, leaking out the sensitive information.

REFERENCES
1. http://en.wikipedia.org/wiki/RFID

2. RFID for Dummies by Patrick J Sweeney II

3. http://www.technovelgy.com/ct/Technology-Article.asp

4. RFID Adoption and Implications; A Sectoral e-Business Watch study by IDC / Global Retail
Insights; Impact Study No. 07/2008

5. RFID: A Technical Overview and Its Application to the Enterprise by Ron Weinstein; IEEE
Computer Society

6. http://www.atkearney.com/shared_res/pdf/RFID-EPC_S.pdf
7. http://epsfiles.intermec.com/eps_files/eps_wp/SupplyChainRFID_wp_web.pdf
8. http://www.autoid.org/SC31/clr/200305_3822_UConnect%20I4.pdf