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The University of Dublin | Trinity College

Department of Computer Science and Statistics

The Waves of Change

The Implications
of
Radio Frequency Identification (RFID) Technology
for
ICT Management
in the
Irish Grocery Retail Industry

Declan McCormack
(04172183 2 52)

A dissertation submitted to the University of Dublin


in partial fulfilment of the requirements for the degree of
MSc in Management of Information Systems
2006

Dissertation under the direction of Dr. Tony Redmond


DECLARATION
I declare that the work described in this dissertation is, except where
otherwise stated, entirely my own work, and has not been submitted as an
exercise for a degree at this or any other university.

I agree that the Trinity College Library may lend or copy this dissertation
upon request.

Signed:___________________________

Date:_____________________________

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page i
ACKNOWLEDGEMENTS
I would like to thank the all the staff of the master‟s programme in
Management of Information Systems at University of Dublin Trinity
College for the knowledge, guidance and assistance they provided during
the course of the programme and this research. In particular, I am grateful
to Dr. Tony Redmond whose diligent contribution, as research supervisor,
at key points during the research was critical to the progress and
completion of this work. I would also like to take this opportunity to
acknowledge the pleasure I had working with my fellow students during
the programme, especially those with whom I collaborated with on team
based assignments and have remained in contact with.

This work would not have been possible without the invaluable and
insightful contributions of Tom Rossiter of Unilever Ireland, Patricia
Proctor and Eric Mayrs of the Musgrave Group and Fergus O‟Hehir of the
BWG Foods Group. I am also extremely grateful to the respondents to the
online survey, too many to mention, whose contribution was above and
beyond my expectations.

I am indebted to all my family for the understanding, support and love


they have given me during this academic endeavour. This is especially
true of my parents Christopher and Frances, as well as Maudi and Barbara,
for the selfless energy and kindness they showed in times of family needs.

Above all, and at all times, my inspiration and motivation are my wife
Judith, and daughters, Moya and Anna May. I thank them for the space
they created in my family life to facilitate this work. Their contribution is
in every letter, word and page of this dissertation and I dedicate it to them.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page ii
TABLE OF CONTENTS

1 THE RESEARCHER ............................................................................................ 3


2 ABSTRACT ........................................................................................................... 4
3 RFID – FRIENDS IN HIGH PLACES ................................................................. 6
3.1 A GROWING MANDATE ............................................................................... 6
3.2 RELEVANCE TO THE IRISH MARKET ............................................................. 7
3.3 THE RESEARCH QUESTIONS ........................................................................ 9
3.4 THEORETICAL FRAMEWORK ...................................................................... 10
3.5 OVERVIEW OF CONTENTS .......................................................................... 11
4 RFID - MAKING WAVES .................................................................................. 13
4.1 THE VISION AND IMPERATIVE .................................................................... 13
4.2 THE ORIGIN OF THE SPECIES....................................................................... 16
4.3 STANDARDS – THE KEY TO COST EFFECTIVE SOLUTIONS ............................. 21
4.4 BENEFITS - FAITH BASED OR BUSINESS CASE RFID .................................... 22
4.5 IMPLEMENTATION, OPERATIONAL AND ETHICAL CHALLENGES .................... 26
5 METHODOLOGY .............................................................................................. 29
5.1 INTRODUCTION ......................................................................................... 29
5.2 THE RESEARCH APPROACH ....................................................................... 30
5.3 THE RESEARCH STRATEGY........................................................................ 33
5.4 POPULATION SAMPLING ............................................................................ 34
5.5 ACCESS .................................................................................................... 35
5.6 ETHICS ..................................................................................................... 37
5.7 RELIABILITY AND VALIDITY...................................................................... 38
5.8 INSTRUMENTATION DEVELOPMENT ........................................................... 45
5.9 ANALYSIS STRATEGY................................................................................ 47
6 THE RESEARCH/IMPLEMENTATION .......................................................... 48
6.1 LITERATURE REVIEW ................................................................................ 48
6.2 IN-DEPTH INTERVIEWS – THE PROCESS ..................................................... 49
6.3 IN-DEPTH INTERVIEWS – THE SAMPLE POPULATION .................................. 53
6.4 SURVEY – THE PROCESS ........................................................................... 56
6.5 SURVEY – THE SAMPLE POPULATION ........................................................ 56
7 FINDINGS AND ANALYSIS ............................................................................. 58
7.1 INTRODUCTION – CATEGORISING AND UNITISING THE DATA ...................... 58
7.2 MAKING A BUSINESS CASE FOR RFID ....................................................... 60
7.3 THE IRISH SITUATION ............................................................................... 61
7.4 AWARENESS AND RELEVANCE .................................................................. 62
7.5 ICT CAPABILITIES AND BUSINESS PROCESSES ........................................... 68
7.6 STRATEGIC PERSPECTIVE .......................................................................... 76
7.7 ADDITIONAL POINTS OF INTEREST ............................................................. 84
8 CONCLUSIONS .................................................................................................. 86
8.1 THE DRIVING FORCES ............................................................................... 86
8.2 CREATING A WIN-WIN PROPOSITION - THE KEY CHALLENGE .................... 89
8.3 COLLABORATION AND ALIGNMENT - THE KEY OPPORTUNITIES ................. 92

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8.4 TUNING TO THE RIGHT FREQUENCY – STANDARDS AND GUIDELINES .......... 94
8.5 TAGS, READERS…ACTION? – THE READINESS OF THE IRISH SECTOR ......... 96
8.6 SUMMARY ................................................................................................ 99
8.7 LIMITATIONS OF RESEARCH AND AREAS FOR FURTHER RESEARCH............100
9 REFERENCE LIST........................................................................................... 101
10 BIBLIOGRAPHY ............................................................................................. 106
APPENDICES ........................................................................................................... 108
I. THE IN-DEPTH INTERVIEW SCHEDULE ..........................................................108
II. THE ONLINE SURVEY QUESTIONNAIRE .........................................................110
III. THE RESEARCH TIMEFRAME.....................................................................111

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1 THE RESEARCHER
Since graduating with a Bachelor of Science honours degree in
Computer Applications from Dublin City University, Declan
McCormack has built up over 15 years experience in the software
engineering industry. During this time he has worked for a range of
companies including JNA Technologies Australia (now Lucent), Bank
of Ireland, Vision and Celerity and as a consultant in a variety of areas
within the information and communications technology industry.

The technical knowledge gained from working as a software engineer


developing electronic data interchange (EDI) and telecommunications
software provided a sound base from which to move to more
management focused roles in the area of enterprise resource planning
(ERP) system implementations and business to business electronic
commerce solutions.

He is currently professional services team lead with an Irish software


company, Celerity, specialising in the development and delivery of
supply chain collaboration solutions to a range of industry sectors
including a number of leading companies in the Irish retail industry.
His role as the leader of the professional services team, charged with
the delivery of these solutions to customers, provides direct contact
with information and communication technology (ICT) and business
process managers and specialists in a number of these companies and
exposure to the business processes, factors and developments that are
key to the continuous success of those industry sectors.

It is the knowledge of, and interest in, the business processes of the
Irish retail sector and the importance of ICT to that sector that has
driven the research into this topic as part of the Masters of Science in
Management of Information Systems programme at University of
Dublin Trinity College.

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2 ABSTRACT
The pervasive potential of RFID has sparked a diverse range of
rhetoric on this technology, from visions of its revolutionary impact on
retail operations and supply chain processes to claims that it is a
biblical sign marking the end of our days. The evidence on the ground
is more pallid and suggests that the potential of RFID, in a wide range
of applications, has been identified by key players in the global retail
industry who have put significant efforts into championing a gradual
international roll-out of this technology for their own vested interests.

This research aims to provide an understanding the current


international thinking and best practise in relation to RFID
technologies and align that with the current position of ICT
management in the Irish retail grocery sector in relation to the
introduction of RFID to their sector, with particular focus on the
upstream links (e.g. suppler, distributor) in the supply chain. To
achieve this, an extensive review of literature, along with field research
that included in-depth interviews with ICT managers of 3 prominent
companies in the Irish retail grocery sector and an online survey of the
wider ICT community within that sector, were carried out to generate
data to answer to the research questions.

Mandates from large retailers, manufacturers of high value products


and marketing from RFID technology suppliers have been found to be
the core driving forces behind this technology. The lack of a clear-cut
business case is the key challenge facing suppliers and distributors
faced with a mandate in implement RFID. Standards and best practise
are not yet mature but are internationally established and marshalled.
While ICT management in the Irish sector share the same views on the
opportunities and challenges as their international counterparts, they
have specific concerns due to gaps in ICT capabilities in the Irish
sector as whole, the small size of Irish suppliers, the sector‟s
dependence on distributors rather than manufacturers and the sector‟s

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ability and willingness to fund an RFID infrastructure. Although the
findings suggest that ICT management are of the opinion RFID will
eventually be a strategic technology in their business sector, the
findings also suggest the Irish retail grocery sector is not well
positioned for the introduction of RFID technology and is likely to be
spectator in this arena for the foreseeable future.

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3 RFID – Friends in High Places
3.1 A Growing Mandate
Radio frequency identification (RFID) systems enable the automatic
identification (Auto-ID) of objects through a combination of attaching
electronic tags to objects and using electronic reading devices, located
within a specified range, to retrieve information from those tags. The
tag is often referred to as a transponder and the reading device as a
reader. The reader is used to retrieve the information stored on the tags.
Auto-ID systems have been in existence for many decades now with
barcode scanner systems being the most prolific example. What RFID
technology brings to this table is the potential to eliminate, or at least
significantly reduce, the manual activities that other automatic
identification systems require in order to retrieve data from the object
(1999. p.1). The transfer of data between the tag and the reader, and
the supply of power to the RFID tag are achieved by the use of radio
waves. This is a simplistic description of RFID and purposely avoids
relaying the various levels of sophistication, in terms of read/write and
passive/active types of tag, currently available on the market for this
technology. The purpose of this section is to introduce the concept of
RFID and put the technology in the context of the research.

RFID is becoming an influent on a wide range of industries across the


globe. Major RFID applications have been implemented within the
U.S. military (U.S. DoD, 2003) , the pharmaceutical industry (Buckley,
2006), the aeroplane manufacturing industry (Swedberg, 2005) and the
automobile manufacturing industry (Angeles, 2005) to name but a few.
In recent years the international retail industry has also turned a
spotlight on RFID technology. High profile trials and implementations
by retail giants such as Wal-Mart, Metro and Tesco have stirred up
trade, media and public interest in the area (ACNielsen, 2005b,
Boucher Ferguson, 2006). The level of commitment to the technology,
shown by the orchestrated investment in Auto-ID research by these and
other leading world retailers and technology companies such Proctor

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and Gamble, Gillette and Intel (Tellkamp, 2006, Smith and Konsynski,
2003), suggests that RFID has a real mandate and is poised to become
a significant factor in the continuous process of improving supply
chain efficiency and effectiveness.

3.2 Relevance to the Irish Market


This research has chosen to focus on the Irish retail grocery sector, also
referred to as the fast moving consumer goods (FMCG) sector. The
(FMCG) sector has been described as including:

―those retailers and their suppliers who provide a range of goods sold
primarily through supermarkets and hypermarkets. The core of their
business is providing ‗essentials‘ such as various fresh and processed
foodstuffs, but they also stock a wide selection of other goods as well
including health and beauty products, tobacco, alcohol, clothing, some
electrical items, baby products and more general household items.‖
(Beck, 2002, Tellkamp, 2006 p.12)

The Irish retail grocery (i.e. FMCG) sector, is a multi-billion euro business
containing major domestic companies such as Dunnes Stores, Superquinn, Musgrave
Group, BWG Foods and ADM Londis as well as leading international companies
such as Unilever, Tesco and Aldi (Beesley, 2006a, Beesley, 2006b). This is a fast
moving industry that is continuously undergoing significant changes to meet the
demands of evolving consumer lifestyles. Technology is essential to the industry in
order to implement efficient supply chain processes and maximise revenue while
maintaining tight operational margins (Forfas, 1999). Peter Drucker singled out

the retail industry‟s supply chain over ten years ago as being a leading
area in terms of embracing innovation:

―It is retailing distribution which in the next few years is going to be


the area of the greatest innovations and greatest changes.‖
(Drucker, 1993) as cited in (Tellkamp, 2006 p.1)

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Figure 3.2.1 highlights the progress that a number of leading world
retailers (e.g. Gillette, Wal-Mart, Tesco, Procter & Gamble, Unilever)
have made in relation to initiatives to experiment with, or introduce
RFID technology in their operations. In 2003, the global retail giant,
Wal-Mart, issued instructions to their top 100 suppliers in the United
States (US) to put RFID tags on all their pallets, cases and high margin
items as of January 2005 (Levinson, 2003). In addition to these
corporate activities, the European Union (EU) has introduced food
traceability regulations, regulation EC/178/2002 (European
Commission, 2002), which took effect on the 1st January 2005 and
requires all food and feed business operators to have in place systems
and procedures that allow complete traceability of food related
products through the supply chain, from farm to fork. RFID technology
has the potential to assist the implementation of these regulations in a
cost effective way (RFID Journal, 2006).

Figure 3.2.1: Major RFID Adoption Milestones in the FMCG Industry (US&Europe)
(Source: (Tellkamp, 2006 p.41))

Based on this crescendo of interest from the international retail grocery


community, RFID has the potential to transform the supply chain
processes that are so vital to the competitiveness of the industry.

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Information and communications technology (ICT) management may
face significant challenges and pressures to implement RFID within
ambitious timeframes and to generate defined return on investments
(ROI) from those implementations. Should ICT management in the
Irish retail grocery sector be considering the implications of the
introduction of RFID technology, in some form, to their sector?

3.3 The Research Questions


The aim of this research is to help determine what factors should be
considered by ICT management when preparing for the introduction of
RFID technology into an Irish retail grocery operation. This research
also aims to measure the level of readiness of ICT management within
the sector for the introduction of RFID technology. To achieve these
aims the research will strive to answer the following key questions:

 What are the Implications of RFID Technology for ICT


Management in the Irish Retail Industry?

o What will be the key drivers for implementing the technology


in this industry?

o What will be the opportunities/challenges of RFID Technology


in the industry?

o What models are available to assist ICT management in


managing this technology?

o What is the readiness of ICT management in the sector for the


introduction of this technology?

The research findings aim to benefit both business and ICT


management in the retail industry by assisting them in considering,
evaluating and/or preparing to introduce RFID technology. The

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research also aims to be of benefit to suppliers of certain technology to
the retail industry in Ireland by giving them an insight into potential
RFID applications and how the industry in Ireland is positioned in
relation to it. The research also offers a chance to raise the general
awareness of RFID within the Irish retail grocery sector by presenting
information on this technology to senior ICT personnel who may not
have the time or mandate to otherwise gather and consider materials on
this technology.

ICT managers may not have control over when to introduce this
technology as powerful trading partners can dictate the timeframe and
requirements for the introduction of new technology to their supplier
communities (Wal-Mart, 2006). Many ICT managers in the industry
may not have time or resources to analyse the implications of the
technology for themselves and this is an area where academic
resources may be better placed to research the relevant information that
can assist ICT managers in the industry decide on how to define and
align their strategies in relation to this technology.

3.4 Theoretical Framework


RFID technology has begun the move from the research laboratories to
real-world commercial applications. As a result of this progress, there
is now a considerable amount of academic research, standards,
government and industry information available in relation to the
technology. In addition to the technology related literature published,
searches through management and trade journals have also shown that
RFID has become a significant topic for both ICT and retail
management communities.

The literature available and reviews creates a picture of the technology


and the community to which the research relates (i.e. RFID and ICT
management in the Irish retail grocery sector). The literature also
helped to identify patterns in relevant research findings and case

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studies that may provide useful lessons to learn for ICT management in
the Irish retail grocery sector. By applying the knowledge built up from
the range of international research into RFID technology, and its
implications, to a very specific community the research should provide
real value to that community. It is hoped that this research project can
make a real contribution to the existing literature in the field by
overlaying the general implications of introducing RFID technology on
the specific characteristics of the community this research is targeting
and extracting from that the tangible and relevant implications of the
technology to that community.

3.5 Overview of Contents


This section provides an overview or roadmap of all the chapters
contained in the main body of this dissertation.

This chapter introduces the research topic, the research questions and
the practical and theoretical motivation for asking those questions.

Chapter 4, entitled „RFID –Making Waves‟, contains an overview of


the literature reviewed in relation to RFID and the research questions.
The vision and sponsors that are driving RFID internationally are
identified as well as the history and progress of RFID and associated
technologies. The current thinking on issues such as standards, benefits
and challenges are then discussed to provide a theoretical and practical
framework of existing knowledge against which the findings of this
research can be analysed.

Chapter 5 describes and justifies the methodology applied in this


research. The appropriateness qualitative research for this topic and an
interpretive philosophy that the research was based on are discussed
along with the use of an inductive approach. Details of the in-depth
interview schedule, and online survey questionnaire, design and
population sampling considerations are included in this chapter as part

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of the description of the case study strategy employed. Other areas
covered in this chapter include research considerations in relation to
ethics, access and reliability and validity.

Chapter 6 provides a brief overview of the process used to collect


secondary and primary data for use in this research. The methods and
strategies employed to generate data for the literature review are
briefly described in this section. This is followed by details of the how
the in-depth interviews with ICT managers from 3 of prominent
companies in the Irish retail grocery sector were arranged and carried
out and any issues encountered. Finally this section also describes the
process used to design and implement the online survey that was
distributed via email to 70 ICT managers or decision makers in the
Irish retail grocery sector.

Chapter 7 presents the findings of this research work. The findings of


the in-depth interviews and the online survey are analysed against
similar categories to facilitate a cross-analysis between the two sources
of data. This chapter ends with a section containing a summary of
common points of information offered by each of the 3 participants to
highlight the commonality of opinions on certain subjects.

The conclusions of the research are presented in Chapter 8. The


structure of this chapter is aligned with the objectives of the core
research questions. Conclusions are drawn on the forces that will drive
the introduction of RFID within the Irish retail grocery sector, the key
challenges and opportunities for the sector in relation to RFID, the key
sources of standards and guidelines that are available and relevant to
RFID implementations and a comprehensive analysis, based on the
research findings, of the state of readiness of ICT management for the
introduction of RFID into the sector.

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4 RFID - MAKING WAVES
4.1 The vision and imperative
The vision of a networked physical world in which every object,
whether it is physical or electronic, can be identified, remotely,
automatically and without contact, by electronic devices is the driving
force behind research in the area of automatic identification (Sarma et
al., 2000).

A striking incarnation of this vision was created for an IBM television


commercial (IBM, ca 2000). In the commercial a man wearing a long
coat walks hurriedly through the isles of a supermarket store, stopping
occasionally to suspiciously place grocery products in to his inner coat
pockets. The man then exits the store without passing through a
traditional checkout terminal. As he walks away from the store he is
summoned back by a security official. The official does not confront
the man about shoplifting activities, as one might expect, but rather
presents him with a receipt for his shopping which the man had
forgotten to take from the discrete scanner he passed through at the exit
of the store. The commercial was attempting to demonstrate a potential
real world application of Automatic Identification and Data
Capture/Collection (AIDC) systems. The store‟s door frame scanner,
electronically tagged products and supporting information systems
were capable of automatically identifying the man, the products he had
on his person, and of processing payment for the total cost of those
products without any manual checkout function.

The commercial significance of this vision is highlighted by Elfers and


Ulrichs (2006). They estimate that 10 to 15 per cent of all work hours
in the German retail industry could be eliminated by the use of RFID
in relation to the checkout function alone. This equates to between €7.7
and €11.5 billion. The realisation of such a vision is reliant on the
implementations and advancements of AIDC systems. AIDC is defined

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by the global trade association for Automatic Identification and
Mobility (AIM) as follows:

―Automatic Identification and Data Capture (AIDC) is the industry


term which describes the identification and/or direct collection of data
into a microprocessor controlled device such as a computer system or
a programmable logic controller (PLC), without the use of a
keyboard.‖ (AIM Global, 2006)

There are numerous automatic identification systems in existence, each


at a different stage of maturity. These range from the ubiquitous
barcode to optical readers, smart cards, electronic tagging or radio
frequency identification (RFID) and biometrics (Finkenzeller, 1999 pp.
1-9). The barcode, when combined with optical laser readers falls
within the definition of an AIDC system and is by far the most
pervasive of AIDC technologies. It has been estimated that over 5
billion barcodes are scanned every day by over 1 million companies in
more than 100 countries (Brown, 2001). Despite the success of barcode
technology over the last 30 years, a number of weaknesses are now
becoming apparent which are rendering the barcode inadequate for a
number of situations. Finkenzeller (1999. p.1) cites the barcode‟s low
storage capacity and its inability to be reprogrammed as the main
stumbling blocks for this technology. In addition to these, Agarwal
(2001. pp.10-11) identifies that the following issues as having an
impact on barcode technology‟s ability to compete with alternative
AIDC technologies such as RFID:

 Barcodes are vulnerable to degradation and wear and can become


unusable if they are damaged.
 Barcodes must be in the line of sight of the reader to be
successfully scanned.
 Barcodes identify only classes of products and not individual items.

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It is widely agreed that RFID technology addresses the shortcomings
of barcodes and the adoption of RFID technology seems inevitable,
especially in supply chain processes (Wang and Liu, 2005, Metras,
2005, Sarma et al., 2004, Levinson, 2003, Alexander et al., 2002b,
Agarwal, 2001, Smith and Konsynski, 2003). Although resistance and
threats have been identified to the predicted move beyond the barcode,
for example due to concerns in relation to whether there is a
compelling business case for all stakeholders in the supply chain as
well as the data management overhead and ethical issues associated
with RFID (Kasi et al., 2005, Karkkainen, 2002), academic
institutions, corporate giants and governments across the world have
all been lining up behind the promise of this technology since the
1990s (Auto-ID Labs, 2006b, Levinson, 2003). In 1999 the Auto-ID
Centre was founded as a unique research partnership between almost
100 global companies and some of the world‟s leading research
universities and was charged with creating the standards and
assembling the building blocks that are required for the
implementation of an “Internet of Things”, the ultimate goal for
visionaries in this arena (International Telecommunications Union,
2005, Sarma et al., 2000). Sponsors of the Auto-ID Centre include
many global retail giants such as Coca-Cola, Wal-Mart, Tesco,
Gillette, Proctor and Gamble, Johnson & Johnson, Metro and many
more. The research universities involved in the centre include the
Massachusetts Institute of Technology (MIT)in the US, the University
of Cambridge in the UK, the University of Adelaide in Australia, Keio
University in Japan, the University of St. Gallen in Switzerland, Fudan
University in China and Daejeon ICU University in Korea (Auto-ID
Labs, 2006a). Since then, a number of the centre‟s founding sponsors,
including Wal-Mart, Metro, Tesco and the Department of Defence in
the U.S., have mandated commercial rollouts of RFID technology in
their supply chains (ACNielsen, 2005b, Elsevier Food International,
2006, Levinson, 2003, Smith and Konsynski, 2003). As a result of
these coordinated and cooperative efforts from both academic and
commercial interests, as well as the real advantages it has over other

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automatic identification systems, RFID technology has achieved a high
profile in recent years. Academic and mainstream media commentators
alike have been optimistic in relation to the future of this technology:

 “The RFID Imperative.” (Levinson, 2003)


 “RFID tags are likely to revolutionise distribution networks…”
(Borriello, 2005. p.36)
 “The RFID tag makes a quantum leap possible in automating
logistics functions…” (Elfers and Ulrichs, 2006. p.8)
 “Smart tag set to outstrip humble barcode.” (Lillington, 2006)

According to Finkenzeller (1999), the total worldwide sales of RFID


systems was above 2 billion US$ in 2000. More recent sources have
forecast the market to grow to 9 billion US$ by 2009 and to 24 billion
US$ by 2015 (Anonymous, 2005, ACNielsen, 2005c).

4.2 The origin of the species


The technology itself has its origins in the 1940s when used by the
British military to distinguish friendly from enemy aircraft and Harry
Stockman is generally acknowledged as the inventor of RFID as a
result of his landmark paper “Communication by means of reflected
power” published within the Proceedings of the Institute of Radio
Engineers in October 1948 (Chawathe et al., 2004) (Borriello, 2005).
Since then RFID technology has evolved and now pervades our daily
lives through ambient and subtle mechanisms. For example, automatic
toll road passes, keyless entry devices for cars and electronic article
surveillance tags on products in stores all use RFID technology in
some form (Wal-Mart, 2006, Finkenzeller, 1999).

A number of high-level overviews of RFID technology exist and


describe the technology in lay terms. Brock (2001. p.6) provides a
simple description of it as a technology ―which transfers data

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wirelessly between tagged objects and electronic readers‖. Agarwal
(2001. p.10) elaborates on this to further describe in context the two
key components of all RFID systems:

“The transponders (tags) typically consist of an electronic microchip


that stores data and a coupling element, such as a coiled antenna, used
to communicate via radio frequency waves. Transponders may be
either active or passive – active transponders have an on-tag power
supply (such as a battery) while passive transponders obtain all their
power from the interrogation signal of the transceiver.

The transceivers (tag readers) typically consist of a radio frequency


module, a control unit, and a coupling element to interrogate
electronic tags via radio frequency waves for information stored on
them; this information can range from static identification numbers to
user-written data to tag sensory data. The transceivers can
communicate their received data to the data processing subsystem via
a fitted interface.”

Figure 4.2.1 shows the basic components of an RFID system.

Figure 4.2.1: What is RFID?

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Several other sources provide a more technical analysis of the
technology and describe the pros and cons of the main features
differentiating RFID systems. These include: (Tag data storage
capacities; Tag read/write capabilities; Tag power supplies (i.e. active
Vs passive tags); System operating frequencies and their associated
ranges) The choice of power supply to the tag and the system operating
frequency standout as the most important features as the former
impacts significantly on the cost, and the latter on the potential read
range and thus potential applications, of the system. (Finkenzeller,
1999, Chawathe et al., 2004, Penttilä et al., 2002).

The transformational potential of RFID technology becomes more


apparent when it is considered as part of a broader “intelligent
infrastructure” (Brock, 2001. p.5) as described by researchers at the
MIT Auto-ID Centre. The holism they consider has RFID as just one
of four major components of an infrastructure that automatically and
seamlessly links physical objects to the global internet. These
components are:

 Electronic tags (e.g. RFID technology)


Consisting of the tags and the tag readers.

 Electronic Product Code (EPC)


A new product code standard conceived as a means to identify all
physical objects. This code will provide for existing industry
product coding standards such as those from the Uniform Code
Council (UCC) and the European Article Numbering (EAN aka
GS1) international. The EPC must be capable of uniquely
identifying quadrillions of physical objects that exist in the world
and maintain that identity into the future. To put some context on
the scale of this objective, it must be possible to allocate an EPC to
each of the roughly ten million billion grains of rice that exist in
the world.

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 Object Name Service (ONS)
Based on the internet Domain Naming Service (DNS) used to
resolve computer addresses across the internet, the ONS will
resolve physical object EPCs to a computer address on the internet
that maintains the object‟s details. The computer will hold these
details in Physical Markup Language (PML).

 Physical Markup Language (PML)


This is a new XML based markup language specifically design to
describe and store information about physical objects. This is
language will be used when object related information is being
exchanged between devices or applications associated with an
automatic identification system.
(Brock, 2001, Sarma et al., 2000).

The unprecedented scale, in terms of information systems, of what the


Auto-ID Centre is aiming to help achieve has not been lost on them.
They are clear from the outset that their aim is to provide the
architecture and tools for building “the largest man-made system ever”,
capable of identifying and interconnecting “more than one trillion (10
12
) new unique objects annually” (Sarma et al., 2000. p.4). Figure 4.2.2
shows an example use of an RFID tag to uniquely identify an
individual drink product.

Figure 4.2.2: Example usage of RFID Tag on Product


(Source: (Smith and Konsynski, 2003. p.302))

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It is not surprising then that there is a degree of scepticism from some
parties in relation to the likelihood that this vision will ever become a
reality. Gartner research cited in O‟Brien (2004) estimates by 2007 at
least 50% of RFID projects will fail. The main arguments against the
rise of RFID being that it‟s too expensive, over hyped and offers no
real advantages over bar codes (Burnell, 1999) and (Riso, 2001) cited
in (Karkkainen, 2003). In defence of the Auto-ID Centre, they have
considered the factors that influenced the success of the barcode and
are attempting to travel along a similar road to reach their destination.
Table 4.2.1. highlights the comparable track that the Auto-ID Centre is
taking in relation to the rise of the barcode.

Barcode Auto-ID
 Low cost technology  Low cost technology
(3 cent barcodes) (5 cent tag)
 Industry consortium  Academic/Industry
setting standards (e.g. consortium setting
Grocery industry – standards (e.g.
Uniform Grocery Product EPCGlobal)
Code Council)
 Retail and technology  Industry leaders
industry leaders championing the rollout
championing the rollout (e.g. Wal-Mart, Metro,
(e.g. Heinz, Proctor & Proctor & Gamble, IBM,
Gamble, RCA, IBM) Intel)

Table 4.2.1 : Comparison of Barcode and Auto-ID Technology Critical Success


Factors
(Seideman, 2006 {Sarma, 2004 #43, Sarma et al., 2004, Sarma, 2001) {Reynolds,
2006 #75}

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4.3 Standards – The key to cost effective solutions
Low cost RFID tags and establishing standards for all components of
RFID Auto ID systems are seen as the critical success factors for this
technology (ACNielsen, 2005b, ACNielsen, 2005a). The EPCGlobal
organisation is now carrying the RFID standardisation effort forward
(Sarma et al., 2004). According to a number of commentators, the
ratification of the “EPC Class I Generation 2” standard, known as
Gen2, was one the most significant steps in achieving both these aims.
Gen2 has since been approved by the International Standards
Organisation (ISO) as an international standard and enables RFID
technology vendors mass produce globally inter-operable RFID
networking equipment, which will in turn result in a decrease in the
cost of RFID implementations and an increase in the number of RFID
deployments (ACNielsen, 2005a) (EPCGlobal, 2005). The EPCGlobal
organisation has also formed an alliance with GS1, previously known
as the European Article Numbering Association (EAN), which will see
the network of GS1 branches across Europe acting as EPC Managers
with the responsibility for issuing and managing EPCs for the country
in which they operate (GS1, 2006a). Despite this concerted effort to
introduce RFID standardisation globally, differences do exist between
the regulations that RFID technology must comply with in different
parts of the world, in particular between regulation in the U.S.A. and
Europe. A survey of RFID hardware vendors carried out in October,
2005 suggests that European regulations impose limits to the speed and
range at which RFID hardware can operate which will create
challenges for certain implementation scenarios. Despite this, the
survey shows the hardware vendors were committed to the Gen2
standard and to avail of the EPCGlobal Hardware Certification
Program to develop compliant products (De Jong, 2005, p39-41).
Other threats exist to one of the key deliverables of the RFID
standardisation efforts. Adoption of the EPC code has met with
resistance in a number of industry sectors.

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―We are collectively not prepared to recommend the usage of EPC or
give any endorsement to it…‖ (Joint Automotive Industry, 2006)

The Health Industry in the U.S. has similar concerns to the Automotive
sector in relation to the introduction of a one-size fits all type EPC
standard as they currently implement their own alpha numeric Health
Industry Bar Code standard (Health Industry Business
Communications Council, 2006).

This resistance is against the introduction of what these sectors see as


an inappropriate standard for their business processes. Both of the
industry bodies cited here fully endorse the benefits that RFID can and
do bring to their sectors and are working towards facilitating a
standardisation process within their individual sector.

4.4 Benefits - Faith based or business case RFID


Indeed, from the range of RFID research initiatives, trials and
commercial rollouts globally in this sector, it would seem that the
potential benefits of RFID have caught the imagination of the retail
industry. This is particularly true of the large retailers, for example
Wal-Mart, ASDA, Tesco, Marks & Spencers and Sainsburys among
others. All of these companies have either deployed commercial RFID
applications within their supply chain or have trialled the technology in
some form (Jones et al., 2004).

Agarwal (2001) distils the benefits of RFID to the consumer goods


industry into checklists categorised by the various players‟ roles in the
supply chain. The matrix (Table 4.4.1) below summarises and
categorises the benefits identified by several sources, including
Agarwal (2001), in the literature reviewed as part of this research:

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BENEFIT MANUFACTURER DISTRIBUTOR RETAILER
1. Improved on-shelf availability Y Y
(linked to reducing out of stocks)
2. Automated proof of delivery Y Y Y
(linked to improved despatch function)
3. Improved security of products Y Y Y
4. Eliminating stock verification Y Y Y
5. Reduced labour Y Y Y
6. Incorporating shelf-life of products Y Y
7. Reducing inventory levels and Y Y Y
warehousing requirements
8. Complete visibility and traceability of Y Y Y
products (minimise spoilage and comply
with regulations)
9. Improved control and management of Y Y
supply chain
10. Improving forecast accuracy Y Y
11. Improved customer profiling and Y Y
targeting
12. Improved customer service Y
13. Reduced check out times Y
14. Increased opportunities for up-selling Y
Table 4..4.1: Benefits of Automatic Identification / RFID to Commercial Stakeholders in the Retail Industry Supply Chain

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The benefits to the retailer, as opposed to other commercial
stakeholders in the supply chain such as the manufacturer or
distributor, are more readily discernible. According to Agarwal (2001)
this is because of the increased complexity of dealing with individual
products rather than cases or pallets. This view is shared supported by
Chappell et al (2003) whose research claims to establish a direct
relationship between the number of times a product must be handled
before arriving at the store shelf and the potential savings that can
result from the implementation of automatic identification technology.

―The more items that must be handled and the more times they must be
handled, the greater the savings potential.‖ (Chappell et al., 2003. p.7)

Research into the German retail industry has conservatively estimated


that the use of RFID to streamline the checkout function alone could
eliminate 10 to 15 per cent of all work hours, with potential savings of
€7.7 billion in that industry (Elfers and Ulrichs, 2006). US retailers
have indicated increases in sales of 7 per cent due to better inventory
management as a result of RFID technology (Jones et al., 2004). To
put this in the context of the Irish market, Tesco Ireland generated
sales of nearly €2.5 billion for the year to February 2006 (Beesley,
2006b). 7 per cent of this sales figure equates to €175 million.

The retailer can also benefit from gathering and using information on
consumer behaviour and patterns. For example, the designer clothing
retailer, Prada, has deployed RFID technology in their flagship New
York store. The RFID infrastructure within the store detects the exact
items a customer has brought with them to the changing rooms and
product specific information and adverts are displayed on video
screens in the changing rooms for the consumer. The information and
adverts displayed are aimed at enhancing the customer‟s knowledge of
the product and at encouraging the customer to consider additional
items for purchase (Texas Instruments, 2002).

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One of the most promising areas in which RFID appears to offer
tangible benefits to manufacturers and suppliers, as opposed to just
retailers, is in reducing the amount of spoilage that occurs with short
shelf life products. In certain instances, spoilage has been estimated at
10% of sales. Spoilage is often caused by products being stored at the
incorrect temperature at some point in the supply chain and/or
inefficient order picking which fails to pick the oldest stock, thus
resulting in the manufacturer or distributor being left with damaged or
expired products. When applied to recyclable transport containers,
RFID investments are cost effective and offer a range of benefits
including improved product picking accuracy and the ability to
monitor and manage temperature control across the supply chain
(Karkkainen, 2003).

Despite all these benefits, a number of strategic, operational and civil


liberties issues pose significant challenges to the success of this
technology (Adelina, 2004).

Strategically, it is difficult for suppliers (i.e. manufacturers and


distributors) to identify a solid business case for the introduction of
RFID technology when existing investments in barcode technology
provide much of the data they require (Jones et al., 2004).

―It is generally agreed that the main benefits from Auto-ID are
downstream in the supply chain, i.e. to the retailers‖ (Agarwal, 2001.
p.12)

In a semi-pessimistic article on RFID (O'Brien, 2004), a source from


Gartner Inc. is quoted as saying:

"We don't know any manufacturer, any Wal-Mart supplier, that


actually has a business case for RFID. We call this faith-based RFID."
(O'Brien, 2004)

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However, trials have suggested collaboration across the supply chain is
required for retailers to maximise their return on investment (ROI) into
automatic identification technology (Bornhövd et al., 2004, Jones et
al., 2004, Karkkainen, 2003, Alexander et al., 2002b).

Convincing irresolute suppliers and distributors there is a business case


to justify the cost of implementing RFID will become easier as the cost
of the technology reduces in the market place due to wide spread usage
and standardisation. As of the autumn of 2003, RFID tags were being
advertised in the UK at 0.5 pence for orders greater than 100,000
(Jones et al., 2004). The international adoption of standards, such as
EPCGlobal / ISO Gen2, are expected to reduce the cost further and
fuel large scale implementations (ACNielsen, 2005a). Standardisation
is key to making the technology feasible from a cost point of view
(Bornhövd et al., 2004. p.1187). However there is a still a need for
retailers to take a fundamental review of their processes and
relationships with suppliers and distributors. A framework is required
to share the costs of establishing RFID infrastructure across the supply
chain, weighing costs allocated against perceived benefits for each of
the participants in the chain (Jones et al., 2004).

4.5 Implementation, operational and ethical challenges


Operationally, the challenges that manifest themselves are primarily as
a result of the data that is generated by the automatic identification
infrastructure. Wang and Liu (Wang and Liu, 2005) highlight RFID
data management as one of the key challenges for RFID
implementations. Item specific data will be available and generated in
a continuous stream from multiple locations. Managing these streams
of continuous data in terms of filtering, interpreting, storing, assessing
and integrating it with existing systems all pose significant challenges
to all ICT management involved in an automatic identification
implementation.

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―An architecture for efficiently for cleaning, filtering and augmenting
the raw data generated by tag readers is essential for the data to
provide any real value‖ (Chawathe et al., 2004. p.1194).

Sarma (2004) also espouses the need for an architecture in order to


facilitate the integration of RFID data and recommends a middleware
layer to reconcile the impedance mismatch that may occur between the
RFID applications and existing ERP systems (See Figure 4.5.1). New
business and operational processes are likely to prevail as a result of its
transformational potential and will require changes in the ICT
infrastructure of many companies (Bornhövd et al., 2004). Jones
(2004) also highlights the likelihood of significant staff training as
another operational challenge to be met.

Figure 4.5.1: RFID System Integration Overview


(Source:(webMethods Inc, 2006))

Security will be another significant challenge for ICT infrastructure.


RFID implementations create a distributed network of objects, with
computers operating on the edge as opposed to being more
traditionally positioned within an ICT centre and facilitating inter-
company connections. This has attracted malicious activities of
hackers in order to access the network to cause disruption to business.
Recent cases have seen hackers breaching security on RFID tags when
the tags were not fully compliant with the Gen2 standards (Hoffman,

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2006). Recent reports suggest that RFID technology might be
vulnerable to viruses that could exploit back-end system software
(Sanders, 2006, Rieback et al., 2006). However these suggestions of an
RFID virus posing a real threat to ICT systems were quickly and
rationally dismissed as “laughably stupid” or as insignificant by a
number of qualified sources (Mello Jr., 2006, Giddings, 2006).

The potential ubiquitous nature of this technology has stimulated a


high degree of public interest. Kasi (2005) cites the public‟s somewhat
irrational concerns about issues of privacy as the primary threat to the
adoption of RFID. In the US, the public perception of RFID has led to
the creation of a pro-privacy group called Consumers Against
Supermarket Privacy Invasion and Numbering (CASPIAN) (Bibby,
2006). The growing prevalence of RFID has also led to wide spread
debate and opposition to the technology on less secular grounds with
Christian groups associating RFID technology with apocalyptical
biblical references to the “mark of the beast” (Shiflett, 2005).

RFID technology is raising both social and technological opportunities


and challenges. There is evidence that ICT management are at the very
least considering the technological implications. According to
Levinson (2003), senior ICT management in the US are conscious of
the range of issues and implications this technology has for their
domains and are monitoring developments with interest.

―CIOs are keeping close tabs on its development. Whether they're


contemplating implementing RFID technology now, in 18 months or in
three years, whether they're thinking at the pallet, case or item level,
they realize now's the time to begin assessing the changes they will
need to make to their IT infrastructures. They know that the future
success of RFID will hinge upon how well they prepare the ground
now.‖ (Levinson, 2003. p.2)

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5 Methodology
5.1 Introduction
The aim of this research is to elicit the factors that should be
considered by ICT management in preparing for the introduction of
RFID technology in an Irish retail operation supply chain. Another
stated aim of the research is to gauge the level of readiness of ICT
management within the industry sector for the introduction of RFID
technology.

To achieve these aims the research seeks answers to the following


questions:

 What opportunities and challenges will RFID technology provide


to ICT management in the sector?

 What models are available to assist ICT management in managing


this technology?

 What will be the key drivers for implementing the technology in


this sector?

 What is the readiness of ICT management in the sector for the


introduction of this technology?

In keeping ―with the general shift in information systems (IS) research


away from technological to managerial and organisational issues‖
(Myers, 1997. p.1) qualitative research methods were applied in order
to obtain answers to the research questions. Qualitative research
facilitates the use of empirical materials such as documents, interviews
and observations, in order ―to understand and explain a social
phenomena‖ (Myers, 1997. p.1). The empiricist approach that this
research has taken is supported by Remenyi et al (Remenyi et al.,
2005. p.33) in their recommendation that masters level students of

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business and management adhere to the tradition of empiricism in this
field unless there is a good reason not to. A review of the extensive
literature on RFID technology and its application in the global retail
industry provided the foundation on which a more detailed and focused
set of questions were built up. These questions were formulated into a
semi-structured interview schedule and used as the basis for interviews
with senior ICT management personnel in a number of companies
operating in the Irish grocery retail sector.

The materials gathered in the literature review and in-depth interviews


provided input to the design of a survey used to gauge the general
awareness of RFID by ICT management, and how its positioned, in
relation this technology within the sector being researched. The survey
contained a set of predominately closed questions aimed at generating
data that could be used to triangulate the data gathered from the in-
depth interviews

The research methodology described in the latter sections of this


document relates to the empirical materials garnered from the literature
review, interviews, survey and from general observations.

5.2 The Research Approach


Interpretivism is the philosophical base upon which this qualitative
research has been constructed. Rather than adopting a positivist
philosophy, with its emphasis on having a highly structured
methodology and quantifiable observations, the interpretive methods of
research are more suited to studying complex interactions and
relationships between technological innovations and organisational
contexts. The implications of RFID, a technology at a very early stage
of development within the selected industry sector of this research, will
be influenced by the attitudes, understandings and social context of the
relevant members of that community. An interpretive approach allows
the exploration of “the subjective meanings motivating people‟s

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actions in order to be able to understand these” (Saunders et al., 2003.
p.84).

The participants in this research work for companies in the industry


sector selected for this research. These companies fulfil related but
different functions, from manufacturer to distributor to wholesale to
franchise operator, within the retail grocery sector. Some perform a
combination of different roles due to the different business interests of
the commercial entity. The different functions necessitate different
commercial agendas and objectives in relation to the phenomena being
researched, namely RFID technology. Interpretivism, sometimes
referred to as phenomenology, facilitates this type of context and does
not expect data to align neatly into generalisable definitive laws.

―The phenomenologist understands that the world is not composed of


a single objective reality, but rather is composed of a series of multiple
realities, each of which should be understood and taken into account‖
(Remenyi et al., 2005. p.35)

Within that philosophy an inductive research approach was taken.


Saunders (2003. p.89) lists the key emphasis of this approach, that
differentiate it from deductive research, as follows:

 Gaining a close understanding of the research context


 Collection of qualitative data
 Flexibility to permit changes in research emphasis as research
progresses
 Less concern with the need to generalise

From the literature review it is apparent that the scale and


pervasiveness of RFID mean there are far more than technological
issues alone to consider in relation to this technology. One of the key
challenges for this research was in defining an appropriate set of
questions that would engage the participants and yield information

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relevant to the focus of the research. The limited inroads RFID
technology has made in the Irish retail grocery sector and the
uncertainty as to the level of awareness within that community of the
technology‟s potential meant flexibility to change the research
emphasis as the research progressed would be key to producing
relevant results. The subjective perspectives of ICT management, on a
wide range of issues, within the different companies surveyed, would
be a factor in the relevance of RFID technology to those companies
and indeed the sector in which they operate. The collection of
qualitative data and the inductive approach to analysing that data
would allow the research to develop an understanding of the way in
which humans interpret their social world (Saunders, pg 87) and thus
help to provide more of an insight into the social context in which this
technology will operate.

Exploratory research is defined by Mauch and Park (2003) as follows:

―Investigations into new or relatively unknown territory for the


purpose of searching out or closely scrutinising objects or phenomena
to lead to a better understanding of them‖
(Mauch and Park, 2003).

The objective of the literature review, undertaken for this research, was
to build an understanding of core technology and to use the experience
of other research and commercial initiatives in RFID to extrapolate the
key areas for consideration and enquiry when interviewing ICT
management in the selected research population. The level of interest,
knowledge and thus hopes and concerns of the research population in
relation to RFID technology was largely unknown at the outset of this
research and there was an uncertainty as to what the research would
lead to. From this point of view the purpose of this research is very
much exploratory.

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5.3 The Research Strategy
The key factors considered when identifying the most appropriate
research strategy to apply were as follows:

 Research questions
The interpretive nature of the research meant the research questions
may elicit in-depth responses that would need to be analysed and
considered against specific organisational contexts. Strategies that
yielded only short definitive responses without any providing any
background to the participant‟s circumstances would not have
suited this research. A combination of in-depth interviews and a
survey was deemed to be the most appropriate strategy for this
research. In this way, context specific responses obtained during
the in-depth interviews could be cross-referenced with survey
responses to establish their relevance and applicability to the wider
community.

 Fiscal, time and accessibility constraints


These constraints provided the motivation to employ a research
strategy that would generate high quality information from a
relatively small research population. The research is aimed at ICT
management in the Irish retail grocery sector. Given the demanding
work environments and schedules of these professionals, gaining
access to relevant people in a timely manner was always going to
be key to the success of the research.

Given the factors above it was considered that a case study research
strategy would be employed to carry out a cross-sectional study by
carrying out in-depth interviews with senior ICT / eCommerce
management personnel from a small number of influential companies
in the Irish retail grocery sector. It was important to the research that
―a rich understanding of the context of the research‖ (Saunders et al.,
2003. p.93) be obtained. Understanding the business model used by,

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and the opportunities and challenges that arise for, each of the various
participants would be key in trying to ascertain the implications that
RFID technology might have for the sector. The case study strategy
facilitates the gaining of this understanding as the philosophy of the
case study is ―that sometimes a full picture of the actual interaction of
variables or events can only be obtained by looking carefully at a
practical real-life instance.‖ (Remenyi et al., 2005. p.165).

Robson in Saunders (2006. p.93) defines a case study strategy as ―a


strategy for doing research which involves an empirical investigation
of a particular contemporary phenomenon within its real life context
using multiple sources of evidence‖. The nature of the research topic,
i.e. the implications of a technology phenomenon within a specific
business context, was deemed suitable to employing a case study
strategy. In line with this strategy, data was also collated through a
questionnaire or survey from a wide range of supplier and distributor
companies operating in the Irish sector. The questionnaire targeted a
larger sample population than the in-depth interviews and sought to
establish the relevance and applicability to the sector of the responses
received during the interviews.

The research aims to provide an insight into the state of a specific


community in relation to a specific phenomenon at a particular
moment in time. In terms of time horizons a cross-sectional or
snapshot approach was deemed most appropriate in relation to the
research question.

5.4 Population sampling


The sampling frame from which the population was selected for this
research was ICT management from a cross section of key players in
the Irish retail grocery sector. Based on the description in Remenyi et
al (2005), the population selected for this research could be considered
a non-probability sample. Subjective judgements were made in

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selecting the research sample or population. From the literature review
it was evident that the implications of RFID for large retailers had been
researched and documented in some depth by a number of other
sources (Alexander et al., 2002a, Corsten and Gruen, 2003, Jones et al.,
2004, Karkkainen, 2003). There seemed to be less consideration for the
companies that operate at earlier stages in the supply chain, such as the
manufacturer, supplier, distributor and/or wholesaler. A decision was
made to focus this research on these other links in the supply chain.
The in-depth interviews focused on those companies that have
potential leverage within the sector to drive discussion on, and/or the
implementation of, new technology initiatives. The survey focused on
a wide range of suppliers and distributors of all sizes in order to obtain
data on the research topic that is representative of the sector as a
whole. Through the researchers own knowledge of the sector and
through empirical evidence gathered from printed media, such as
national newspapers and trade magazines, a number of companies
where identified to target for gaining access to ICT management for
the purposes of in-depth, semi-structured, interviews and a large
number of companies were identified to target for participation in an
online questionnaire survey. More details on the selected sample are
provided in chapter 6 entitled “The Research / Implementation” later in
this document.

5.5 Access
Negotiations for access only began after a significant volume of
literature had been reviewed on the research topic. This was to ensure
the researcher had a solid grounding in the research topic before
issuing requests and potentially engaging in correspondence with
intended research participants on issues relating to the research topic.
Having identified the target research population, a direct approach was
made by email to each member of the population to request access for
the purposes of this research. Existing contacts were targeted for in-
depth interviews. These contacts were known to the researcher on a

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professional basis. The use of existing contacts for research involving
the case study strategy with non-probabilty sampling is endorsed by
Saunders et al (2003. p.119). The perceived benefits of using existing
contacts were that contact details were available and only minimal
introductions were required in relation to the background of the
researcher as various degrees of professional trust and credibility had
already been established with each individual. New contacts had to be
established for the purposes of the online questionnaire survey. The
research focused on suppliers, distributors and retailers in the Irish
retail grocery sector and contact names were obtained through trade
associations, publications and direct requests to the targeted companies
for ICT management contact details.

An initial email to the constituents of the target population contained


an introduction to the context of the research, a brief on what was
being requested of the individual, a copy of the research proposal, and
details in relation to the ownership, confidentiality and potential
distribution of the research findings. Email was deemed to be the least
intrusive method of requesting access to the target research population.
This medium of communication allows the potential interviewees some
time to cogitate about the request before deciding on whether to
participate in the research thus reducing the possibility of the intended
participants feeling pressurised or obliged to participate. Following
positive responses from each and every constituent that was issued
with a request for an interview, the initial email was followed up with
direct contact, either with a phone call or face to face meeting, to
briefly and informally discuss the research and its objectives and to
confirm interview dates. The email to the target population for the
survey contained a uniform resource locator (URL) link to the online
survey form on the internet. No email response was requested from this
sample population, although a number of participants did respond to
confirm their participation.

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5.6 Ethics
Saunders (2003. p.129) defines ethics in the context of research as
referring to ―the appropriateness of your behaviour in relation to the
rights of those who become the subject of your work, or are affected by
it‖.

Care was taken in this research project, at every stage of the


negotiation for access, to highlight ethical issues to the potential
participants and to maintain the integrity of the research. Intended
participants in the research were briefed on the following issues:

 The context, motivation, purpose and scope of the research


 The academic and non-commercial nature of the research
 The intended sampling frame
 The data requirements of the intended participants
 The right to decline participation
 The right to participate and decline any individual question
 The right to withdraw from the research at anytime
 The right to remain anonymous
 The right to seek a temporary stay on publication of the dissertation
to the university library.
 The prior approval that will be sought from all significant
contributors before the publication of any part of this research that
explicitly contains their contribution.

A copy of the initial email request for access, participation, as well as a


link to the online survey and the interview schedule are included in
Appendix I.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 37
5.7 Reliability and Validity

5.7.1 Establishing Credibility


In attempting to establish the credibility of our research findings, all
we can do is to reduce the possibility of getting the answers to our
research questions wrong (Saunders et al., 2003. p.100). To reduce this
possibility, a significant focus must be allocated to the reliability and
validity in the design of the research.

Reliability is described as referring to the consistency and stability of


evidence and measures in the research. In effect, reliability relates to
whether the research could be replicated by others on different
occasions and yield similar results. Validity relates to the degree to
which the research has been designed to ensure the intended
phenomena of the original research question is what is actually studied,
the credibility of inferences made between variables considered in the
research and ―knowing whether the researchers findings are
generalisable to a wider universe beyond the immediate research
environment.‖ (Remenyi et al., 2005. p.180).

Several measures were taken to increase the reliability and validity of


the research and overcome quality and bias issues in relation to the
data collected. The measures included:
 Building a solid grounding in the subject matter
 Designing the in-depth interview questions and process
 Designing the survey questions and process
 Triangulation

5.7.2 Building a Solid Grounding in the Subject Matter


An extensive review of literature on the research topic was undertaken
in advance of any interview design or attendance. Building up
knowledge in the area provided a roadmap to designing both the
interview and survey questions. The literature highlighted key
attributes of the sample population that needed to be evaluated in order

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 38
to establish the level of readiness of that sample population for the
introduction of RFID technology to their sector. The interview and
survey question sets were both designed with the goal of collecting
data relevant to these key attributes illuminated by the literature
review.

The knowledge built up as a result of the literature review also enabled


the researcher to engage with the interviewees in discussion on the
research topic and to probe the interviewee for deeper answers. This
preparation may also have installed a sense of credibility with the
interviewee in relation to the gravity of the overall research project.

5.7.3 Designing the in-depth interview questions and process


Careful consideration was given to the wording, purpose and
categorisation of each question in the interview schedule. Using
Saunders (Saunders et al., 2003. p.299) checklist, the wording of the
questions went through several revisions in order to maximise clarity,
validity and conciseness while minimising ambiguity, duplication and
any possibility of causing the respondent offence. The purpose of the
questions was to collect data to assist in gaining an insight into certain
attributes of the sample population. The literature review identified the
attributes in question and these are listed in Figure 5.7.1 below.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 39
Awareness of RFID

* Company wide awareness


* Trading community wide awareness
* Knowledge of standards
* Initiatives in progress

ICT and Business Processes

* Electronic collaboration with Trading Partners


* Business Process Definition
* ICT Capabilities
* Availabilty of RFID subject matter expertise

Strategic Relevance

* Where it rates on ICT Priorities


* The most likely drivers of RFID
* The most likely obstacles to RFID

Figure 5.7.1 : Key Categories for collecting and analysis

By focusing on these aspects of the interview schedule design,


wording, purpose and categorisation, and by piloting the interview on a
number of IT resources, the final version of the interview schedule
proved to be reliable in terms of the consistency in which the questions
were understood by the interviewees and how that understanding was
in line with the interviewer original intention.

Careful consideration was given to the design of the interview process


in order to minimise bias in responses and to maximise the perception
of credibility interviewees would associate with this research. This
design effort was based on a set of ―key measures to overcome bias in

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 40
qualitative interviews‖ (Saunders et al., 2003. p.254) and is aimed at
ensuring valid results are collected from the interviews.

In advance of the interviews, the interviewees were supplied with a


structured interview schedule of questions. In addition to this, suppliers
were provided with some context to the research and a small number of
sources of information on the research topic, identified during the
literature review, which provided a cross section of work and opinions
on the research topic.

Interviews were conducted in a professional manner and formal attire


was adopted to respect the working environment of the interviewee. In
almost all cases, the dates were agreed in advance, the requirements
were established and the interviewee was met at their own company
offices. Again the aim of this approach was to establish credibility with
the interviewees and encourage them to consider the research
seriously.

The interviews were opened on a casual note, open-ended questions


asked, an active listening approach was employed and impartiality was
maintained in relation to the responses from the interviewees. On
occasion, the interviewees were prompted for more detailed answers
and/or encouraged to continue down a route, tangent to the interview
schedule, which had opened up in relation to the research topic.

In one instance, the participant recorded their initial responses to the


questions in the interview schedule in advance of the interview in the
electronic interview schedule document. In all instances, short hand
notes were taken during the interviews and a full record of the
interview was captured in electronic form within two to three hours of
completing the interview as recommended by a number experts in this
field (Healy 1991 cited in Saunders et al, 2003. p.260).

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 41
5.7.4 Designing the survey questions and process
Considerable effort was apportioned to the design of the survey
questions in order to improve its quality in terms of validity and
reliability. Saunders (2003. p.292) sets out four stages that must occur
if a question is to be valid and reliable.

Researcher is clear about the


information required and
designs a question

Researcher decodes the Respondent decodes the


answer in the way the question in the way the
respondent intended researcher intended

Respondent answers the


questions

Figure 5.7.2 : Stages that must occur if a question is to be valid and reliable
Source developed from (Saunders et al., 2003)

In designing the survey questionnaire, as is common practise in


designing questionnaires (Remenyi et al., 2005. p.151), all materials
gathered and observations noted during the literature review and the in-
depth interviews were used in producing the first draft versions of this
qualitative product.

From these materials and observations, a set of the key attributes of the
sample were identified for which data was needed in order to build on
to existing knowledge required to answer the research questions. A
data requirements table, similar to that described in Saunders (2003.
p.290), was generated to focus in on the variables on which data
needed to be collected and the investigative questions that the survey
needed to contain in order to collect that data. To allow comparison
with data gathered in the in-depth interviews the survey questions were
based on the questions in the interview schedule and categorised in a

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 42
similar manner. The survey questions were organised into the
following categories:

 Awareness and perceptions of RFID


 Readiness for the adoption of RFID
 Driving factors, potential applications and obstacles

The type of research and the characteristics of the survey sample were
both significant considerations in the design of the survey
questionnaire.

This component of the research is mainly descriptive, although certain


aspects of the responses were evaluated in a qualitative way. ―Forced-
closed‖ (deVaus 2002 cited in Saunders 2003. p.292) was deemed to
be the most appropriate question type for this type research. This
question type provides a number of pre-defined answers from which
the respondent must choose. This type of question generates consistent
responses.

A self administered, online questionnaire was decided upon for the


following reasons:

 The intended respondents were ICT professional for whom it is


common practise to correspond via email and access the
internet.

 The ability to distribute an internet URL link to the


questionnaire allowed for the targeting of particular
respondents by name, and provided for a strong likelihood of
the intended respondent being the actual respondent as people
tend to access their own emails.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 43
 The anonymity of participation in the survey was aimed at
reducing any sense of pressure to oblige and/or any respond
with the‟right answer‟ that intended respondents might feel.

 An online survey allowed for easy distribution to a wide


community of potential participants.

 A short self-administered questionnaire with forced-choice


questions was designed with the aim of providing a non-
complex, quick to complete, survey that would help to
maximise our response rate from the busy ICT manager and
professionals that this research is aimed at.

5.7.5 Triangulation
Citing Loveridge‟s (1990) paper on triangulation, Remenyi et al
(Remenyi et al., 2005) highlights the use of this technique of validating
evidence as adding gravitas to the findings of research using a case
study methodology. To that end, this research used in-depth interviews
to canvass the opinions of ICT management working for influential
companies that fulfil different roles within the Irish Grocery Retail
sector supply chain. The survey collected data from a wider range of
ICT contacts across the sector but with less context required in the
responses. The purpose of the data collected using the online survey
was to triangulate it with the key data extrapolated from the interviews
and the literature review. The combined outlook of this research
sample provides a cross section of the perspectives on RFID
technology held by the various players in this supply chain.
Documentation and publications of standards body in this industry
sector were also reviewed in order to gain an insight in to the future
direction in terms of best practice that this industry in aiming for
relation to the research topic.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 44
5.8 Instrumentation Development

5.8.1 In-Depth Interview Development


As the core research questions relate to a technology that has yet to be
implemented to any significant degree within the research sample and
as the research sample included participants from companies operating
different business models and working to different business agendas,
albeit in the same business sector, it was decided at an early stage to
use a semi-structured type of interview for the purposes of this
research. This allowed the interviews to be conducted along the lines
of specific themes as well as specific questions but with the added
flexibility of altering those themes and questions in particular
interviews, ―given the specific organisational context that is
encountered in relation to the research topic.‖ (Saunders et al., 2003).

As the benefits of being well informed on the research topic are clear
(Healy, 1994 cited in Saunders et al, 2003. p.255), the interview
schedule and the survey was grounded in findings collated from
literature review and observations of the business processes that
operate in the Irish retail grocery sector. From the knowledge garnered
a set of themes were defined on which to base the interview schedule
and the survey. These themes were then further proliferated into more
specific questions. Both the themes and questions were developed to
achieve specific objectives in relation to gathering evidence to help
answer the research questions.

An initial draft of the interview schedule was then piloted on two IT


project managers outside of the research sample, both of whom had
knowledge of RFID technology and the Irish grocery retail sector. The
survey was piloted on a number of users including the research
supervisor and a number of contacts in ICT management In terms of
the in-depth interviews, the pilot provided valuable feedback and
facilitated the refinement of the questions on the interview schedule as
well as providing an estimate as to the typical flow and duration of the

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 45
interview. In terms of the survey the pilot informed revisions to the
layout, context information provided and the selection and wording of
pre-defined responses designed in the survey. The pilot also
highlighted the ways in which bias can be introduced to findings and
helped to guard against it. This was a very time consuming process but
it was deemed to be a beneficial activity, an opinion shared by
Saunders et al (2003):

―The pilot may be so important that more resources are utilised at this
stage than in the final collection of evidence.‖ (Saunders et al., 2003)

5.8.2 Survey Development


An informal approach was taken to the development and pre-testing of
the survey questionnaire. Best practice, as set out by a number of
different subject matter experts in the area of business research
(Saunders et al., 2003, Remenyi et al., 2005), was followed in the
design of the initial draft of the questionnaire. Following consultations
with the research supervisor in relation to the draft questionnaire, a
number of revisions were made in order to improve the introduction,
layout and wording of the questionnaire. The revised questionnaire was
made available to five colleagues whom work as IT professional in
various sectors, including the Irish grocery retail sector. The feedback
from piloting the draft questionnaire helped to establish a guideline
duration within which a respondent could be expected to complete the
questionnaire. The pilot was also beneficial in the following areas:

 Highlighting bias in questions and answers


 Identifying irrelevant questions asked
 Identifying relevant questions not asked
 Identifiying questions open to mis-interpretation
 Establishing the validity and reliability of the research

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 46
Revisions to the survey questionnaire were made based on the
feedback received from the pilot testing.

5.9 Analysis Strategy


An inductively based analytical approach was taken in the analysis of
the data collected as part of this research. In accordance with the
advice of Marshall and Rossman (1999) cited in Saunders et al (2003.
p.379), the data analysis activities began at the data collection stage by
defining categories for the interview and survey questions. These
categories grouped together questions related to similar themes, which
emerged from the literature review, and thus facilitated the analysis
and comparison of responses collected based on those themes.

A spreadsheet was created containing the framework of categories and


the spreadsheet was populated with the units of data extracted from the
interview and survey participant‟s responses. According to Saunders
(2003), categorising and unitising the data in this way provides a
mechanism to:

1. Comprehend and manage the data collected


2. Integrate related data drawn from different transcripts and notes
3. Identify themes or patterns for further explanation
4. Develop and/or test hypotheses based on patterns or
relationships
5. Draw and verify conclusions.

The responses were reviewed for similar terms or meanings in


responses, even if they were found in responses to different questions.
This is often possible if participants digress from the initial question
asked and widen or deepen the discussion.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 47
6 The Research/Implementation
6.1 Literature Review
Information nets were cast across a range of academic, professional
and commercial resources, in both printed and online mediums, in
order to ascertain a general impression of the volume of literature, the
high profile topics or news stories and the depth and focus of existing
research already carried out in relation to RFID within the retail
industry sector in general. The following list includes a sample of the
key online resources used to source literature reviewed as part of this
research:

 Trinity College Library Dublin Information Resources, in


particular the wide range of “E-Journals” available at this source.
http://www.tcd.ie/Library/resources/

 Academic and professional literature catalogue and search engines


sites such as the MIT spawned Auto-ID Labs, Google Scholar and
Emerald Insight.
http://www.autoidlabs.org/
http://scholar.google.com/
http://www.emeraldinsight.com/Insight/
http://www.epcglobalinc.org/
http://www.gs1.ie/

 Commercial online publications


http://www.rfidjournal.com/
http://www.rfidgazette.org/
http://www.cio.com/

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 48
Search terms used to generate results relevant to the field of research
included:
 RFID / Radio Frequency Identification
 Auto-ID / Automatic Identification
 RFID Retail
 RFID Wal-Mart
 RFID Metro
 RFID UK Retail
 Irish Retail

Initially a number of key search terms were used to generate entry


point literature to the research topic. From the results yielded by this
initial search a small number of academic and commercial bodies and
authors emerged as being repeatedly referenced throughout the initial
materials found. Reviewing these regarded papers provided a myriad
of relevant information and references from which to build a solid base
for this research. iSome of the most regarded sources of literature
identified included:

 Finkenzeller‟s The RFID Handbook


 Auto-ID Labs - http://www.autoidlabs.org/
 International Journal of Retail and Distribution Management
 Communications of the Association of Computing Machinery
 Proceedings of the Very Large Databases (VLDB) Conferences

In addition to the rich vein of information available through these


sources, trade publications and the national print media publications
were also surveyed for information relevant to the research topic.

6.2 In-Depth Interviews – The Process


The literature painted a clear picture of the theoretical, practical and
socio-political issues related to this technology and provided the

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 49
knowledge base upon which a detailed list of themes and questions
was constructed for use in the in-depth interviews. For example, some
of the literature identified suggested a range of conditions under which
RFID implementations were more likely to generate a return on
investment. Building on that research, questions were added to the in-
depth interview schedule with the specific objective to gather data as to
the current state of the Irish retail grocery sector in relation to those
conditions. The analysis of such data will assist in concluding whether
or not the sector is well positioned at present to successfully implement
RFID technology.

In tandem with building up a strong knowledge base on the research


topic and designing an in-depth interview schedule with categories of
themes and questions, a shortlist of intended participants was drawn
up. The following attributes were considered important in deciding on
the sample population to target for participation in the depth
interviews:

 The participant should represent a retail grocery company


operating in the Irish retail grocery sector.
 The company should have the potential to reflect current activities
of the sector
 The company should have the potential to influence current
activities of the sector
 The company should have significant Irish based ICT operations
and management
 The participant should be a member of the company‟s ICT
management structure or an ICT supply chain specialist.
 The participant and company should have experience of
implementing ICT initiatives within the sector.
 The participant must be accessible within a timeframe compatible
with the research schedule.

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Using these selection criteria, as well as a commercial knowledge of
the key players in this industry sector, the following companies and
people were targeted for in-depth interviews as part of the research:

 Unilever Ireland, IT Manager


 Musgrave Group, E-Commerce Coordinator
 BWG Foods Group, IT Manager

Interviews were carried out at the offices of Unilever Ireland and at


Musgrave Wholesale Services offices. Due to other commitments the
BWG Foods Group IT manager agreed to carry out the in-depth
interview over the telephone.
A more detailed profile of each of these companies and particpants is
provided in the following section 6.3. Table 6.2.1 summarises the
interview arrangements.

Participant Company Location Date/


Duration
Tom Rossiter Unilever Ireland Unilever May 2006/
Head Office, 1hr 30mins
Citywest,
Dublin
Fergus O‟Hehir BWG Foods Telephone Aug 2006/
Group 40mins
Patricia Proctor Musgrave Group Ballymun, Aug 2006/
Eric Mayrs Dublin 1hr
Table 6.2.1 : Summary of in-depth interview arrangements

The interview process lasted approximately between 40 minutes and 1


hour and 30 minutes. The participants responded promptly and
enthusiastically to the initial request in relation to the research. One of
the key difficulties following this initial expression of interest was to
identify suitable dates and times to hold the interviews. In one case it

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 51
this difficulty was overcome by agreeing to carry out the interview
over the telephone. Responses to the interview schedule questions were
recorded on paper in note format. Balancing the need to concentrate on
recording responses accurately and maintaining a flow to the interview
presented a significant challenge. This difficulty was alleviated
somewhat by the cooperation of the participants in terms of being
forthcoming with responses and patient between questions while notes
were recorded. A disadvantage of recording responses manually was
that it was not always possible to maintain eye contact with the
interviewee while they were responding to questions. This can be
unsettling for the respondent however, in this research, all participants
seemed unwaivered by this aspect of the interviews and contributed
above and beyond the questions set out in the interview schedule.

In all cases, the notes recording the participants‟ responses were typed
up within two to three hours of finishing the interviews. A data matrix
was then populated with the responses of the various participants in
order to facility the analysis of the data.

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6.3 In-Depth Interviews – The Sample Population

Respondent A
Unilever Ireland
Tom Rossiter – IT Manager

Unilever is a major international company, employing over 350,000


people worldwide. It operates in approximately 150 countries mainly
in the area of Foods and Home and Personal Care. They have a
portfolio of global, regional and local brands. Some such as Magnum
and Dove have become world leaders while others are the top choice
for consumers in specific countries such as HB Ice-cream and Lyons
Tea. Other key brands include Birds Eye Frozen Foods, Hellmann's,
Pot Noodle, Chicken Tonight, Ragu and all of the Knorr Product range.

Tom Rossiter, IT Manager at Unilever Ireland, kindly agreed to


participate in this research. Under Tom‟s management, Unilever
Ireland have been proactive and innovative in terms of using ICT as a
business enabler and to open up new business opportunities.

As one of the largest fast moving consumer goods (FMCG) companies


in Ireland, Unilever Ireland are continuously collaborating with a wide
range of trading partners, of all sizes and ICT capabilities, in order to
stream line and innovate business and supply chain processes. His
experience in delivering ICT solutions in this fast moving and
challenging environment means Tom is well positioned to comment on
the potential implications of technologies such as RFID to the Irish
retail grocery sector. Tom can also draw on the extensive research and
development knowledge that the global Unilever Group have built up
in the use various technologies that have the potential to improve their
business.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 53
Respondent B
Musgrave Group
Patricia Proctor– E-Commerce Coordinator
Eric Mayrs – IT Project Manager (RFID Project)

Musgrave Group is Ireland's largest grocery distributor. The company


operates an island-wide distribution and support network for
independent supermarket owners and franchises the stores which hold
24 per cent of the grocery market in the Republic and 10 per cent of
the market in Northern Ireland; a 20 per cent market share of the island
overall. Musgrave Group was founded in 1876 and is one of the two
largest private companies in Ireland. The company operates a retail
franchise division through the SuperValu and Centra outlets, and also
has a cash and carry division, Musgrave Wholesale Services, and a
retail and wholesale business in Spain. In 2002, the company acquired
UK supermarket group Budgens and more recently in 2004, Londis
UK.

As E-Commerce Coordinator for the Musgrave Group, Patricia Proctor


has extensive knowledge of the requirements and issues involved in
electronic trading systems within the Irish retail grocery sector and has
been involved in and coordinated a range of electronic commerce
solutions within the sector with the objective of improving supply
chain efficiencies and effectiveness for the Musgrave Group and their
trading partners. Eric Mayrs is an ICT Project Manager with the
Musgrave Group and has recently become involved in a project to
evaluate the potential feasibility and benefits of a specific application
of RFID to the Musgrave Group. Both parties kindly agreed to
participate in an in-depth interview.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 54
Respondent C
BWG Foods Group
Fergus O’Hehir – IT Manager

BWG Foods Ltd is one of the leading food & drink wholesalers in the
Irish Market. Its growing foodservice division, BWG Foodservice,
provides a quality customer focused service to a fast paced and
unpredictable catering industry. It delivers a full-line solution in
chilled, fresh, frozen, ambient and paper product on a nationwide basis
providing value, choice and variety in high quality produce and
innovative ideas to support the busy caterer. It is the master franchise
operator for the SPAR chain in the Republic of Ireland and South-west
England, as well as operating 150 SPAR stores through its subsidiary
Newhill. In addition, BWG holds the master franchise for the Mace
chain in most of the Republic of Ireland

The BWG Foods Group are strong proponents of standardised


electronic collaboration within the retail grocery sector and have
comprehensive electronic supply chain links with their trading
partners. The group‟s IT director is currently chairman of GS1 Ireland,
the global supply chain standards organisation. As a senior ICT
manager with the group, Fergus O‟Hehir plays strategic role in the
design and implementation of these electronic trading links as well as
in the design and management of the ICT infrastructure that supports
the companies overall business operations. Fergus kindly agreed to
participate in an in-depth phone interview for the purposes of this
research.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 55
6.4 Survey – The Process
The survey was carried out to triangulate and validate the data gathered
from both the literature and, in particular, the in-depth interviews. The
process of designing the survey is considered in more detail earlier in
this document in the research methodology section. Once the first draft
of the design was complete, the freeware version of a web survey
creation program was accessed on a website to create an online survey
(SurveyMonkey.com, 2006). This website provided services to allow a
user design an online survey and make it accessible through the
internet to the sample population (McCormack, 2006). Data is
automatically gathered as users respond to the survey questions and
stored in the website‟s database. The data collected can then be
analysed using tools available on the SurveyMonkey.com website.

Following feedback from a number of pilot participants, the survey


was refined in order to improve the chances of collecting data that will
answer the research questions.

A generic email was then prepared containing a request to participate


in the research survey. The contents of this email covered the
following topics:

 An introduction to the researcher and the research institution


 A brief background and context to the research topic
 An overview of ethical issues in relation participation in the
research
 A link to the online survey
 Contact details

6.5 Survey – The Sample Population


The objective of the survey was to obtain a snapshot of responses to
the research questions from ICT management in a cross section of

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 56
companies in the Irish grocery retail sector. The contact details for the
sample population were obtained through searching company websites,
trade publications, association membership lists and cold calling
supplier, distributor, wholesaler and retailer companies of all sizes to
identify the contact details of an appropriate ICT manager. Most
companies were cooperative in this endeavour.

Of the total 100 invites that were issues to the target sample
population, of mostly ICT managers in the Irish retail grocery sector,
17 responded and took part in the survey. Based on the quality of the
additional information volunteered by a number of these respondents
(See Table 6.5.1) it is evident that some knowledgeable and
experienced people in the area of RFID engaged with the research
topic.

Would you like to add any general comments in relation to


RFID and its relevance to your business?
1. I am involved at Board level at GS1 in the progression of RFID in
this jurisdiction.

2. RFID will have major significance and will add unrecoverable cost
to our business. Government legislation will eventually catch up
and push us in this direction when the government wakes up to the
technology.

3. Our products are of very high value, yet are quite small in volume -
despite this we find the cost of RFID even at the Boxed or pallet
level to be prohibitive.

4. We use RFID primarily to count all stock on a quarterly basis and


other stock on a periodic basis. It is the most effective and efficient
method we have and is proving satisfactory.

5. RFID does have huge potential along all areas of the supply chain,
but as the technology is not yet mature, it may be some time
before it's realised. For example, it could be possible to use RFID
on all products in a store to speed up the check-out process, but
the RFID cost is off putting for that right now. We would adopt a
cutting (not bleeding) edge to newer technology, so in the
**short** term I can't see us using RFID in our Retail operations.
However RFID will be a consideration for any future change in our
IT systems.
Table 6.5 : Additional responses to Online Survey
Source developed from (McCormack, 2006)

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 57
7 Findings and Analysis
7.1 Introduction – Categorising and Unitising the Data
The main aim of the research questions was to generate data across a
number of fronts that would of collectively yield insights on the
implications of RFID technology for IT management in the Irish Retail
Grocery sector.

Existing research in this subject matter and the experiences of early


adopters of the technologies in similar sectors in other countries were
seen as key resources to focus on in order to identify the opportunities
and challenges that RFID might give rise to, the forces that drive the
technology and any implementation models or guidelines that might
assist in managing its introduction from an ICT management
perspective.

The knowledge gained from these secondary data sources was then
compounded with primary data collected from several in-depth
interviews and an online survey to build up a picture of how ICT
management in the Irish retail grocery sector are currently positioned
in relation to RFID.

The theoretical framework against which the primary data in this


research has been collected and analysed was born from several
research works examined during the literature review. These works
evaluated the experience of early adopters of the technology, and the
lessons they learned, to identify areas companies should focus on in
order to prepare for an RFID implementation. The key areas
considered as relevant to this research are highlighted in Table 7.1.1.
These areas were used to categorise the investigative questions put to
respondents in both the in-depth interviews and the survey.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 58
FACTORS TO PURPOSE SOURCE
CONSIDER
Identify an executive A strategic executive champion is needed with comprehensive company Agarwal P24
to champion contacts and influence to drive an implementation and tackle sensitive
issues.
Understand the current In order to highlight cost bottlenecks within the supply chain that stand to Agarwal (2001:P24)
supply chain processes benefit the most from the application of Auto-ID technology and Gross (2003:P11)
processes.
Collaborate across the To maximise ROI by maximising complete supply chain visibility of {Bornhovd,2004
supply chain products. The „goods-in‟ receiving process can be significantly hastened Jones (2004)
when EDI is used in conjunction with RFID. It also likely that companies Karkkainen (2003)}
with a low level of existing EDI Invoicing automation could see the most Chappell (2003)
transformational impact of RFID applications.
Prepare the ICT Ability to handle and exploit reams of data generated by RFID. Systems Chawathe (2004)
Infrastructure integration, network bandwidth, and quality of hardware performance Wang (2005)
(e.g. RFID readers). Kelly (2006)
Gain access to subject Careful consideration needs to be given to sourcing resources with best Gross (2003:p4)
matter expertise practise knowledge and expertise.
Table 7.1.1 : Key factors to consider in preparing for an Implementation of RFID technology

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 59
7.2 Making a Business Case for RFID
A number of works were found to assist in the process of evaluating
and preparing a business case for RFID in a number of applications.
The key findings of these secondary data materials were research
papers providing the guidelines and frameworks listed in Table 7.2.1.

Purpose of the Work Source(s)


A number of works reported on (Agarwal, 2001)
the benefits achieved by early (Alexander et al., 2002b)
adopters and provided a rationale (Chappell et al., 2003)
to explain the benefits achieved. (Tellkamp, 2006)
Guidance is also given on building {Jones, 2004 #68
a business case. {Angeles, 2005 #15}
This work provides guidelines on (Agarwal, 2001)
factors that need to be considered
in a benefits study of an RFID
supply chain project and proposes
a methodology to evaluate those
benefits.
A set of use cases to define the (Milne, 2002a)
integration of RFID solutions with (Milne, 2002b)
existing business information
systems.
A change readiness guide to act a (Gross and Lo, 2003)
as a guide to project managers as
they prepare for their RFID
implementation.
An RFID return on investment (Auto-ID Center, 2006)
(ROI) calculator. Developed using
feedback from the major
commercial entities leading the
way in adopting RFID.
Table 7.2.1 : RFID implementation benefits and guidelines

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 60
Although these papers were the work of a wide range of authors from
different academic and professional backgrounds, the main source of
these materials was the Auto-ID Centre as it contains a wealth of
information resources in relation to RFID and it‟s application in
general. However, support, in terms of references and similar findings,
was found in other literature for the fundamental approach and points
made in the Auto-ID papers.

7.3 The Irish Situation

7.3.1 The Interviews and the Survey


This section categorises and summarises the primary data gathered
from the in-depth interviews and the survey carried out as part of this
research. The qualitative data collected from participants in the in-
depth interviews has been interpreted into summarised responses to
provide a more succinct set of data for the purposes of analysing the
findings. In many cases, the key points made by the participants have
been presented in addition to the hermeneutically summarised
responses in order to highlight evidence of any differences between,
and/or commonalities in, the detailed responses that were recorded.

The qualitative data, collected from the in-depth interviews, are


presented in tabular format in order to combine a summarised
interpretation and a more descriptive interpretation for each of the
participant‟s responses.

The quantitative data, collected from the online survey, is presented in


chart format in order to create a visual impression that can be easily
used for comparison with the qualitative data responses.

For the purposes of collection, the questions asked during both the in-
depth interviews and the online survey were grouped into three
categories:

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 61
 Awareness and Relevance
 ICT Capabilities and Business Processes
 Strategic Perspective

This categorisation of the data is maintained in the analysis of the


findings and facilitates a comparison between the qualitative and
quantitative data sets.

7.4 Awareness and Relevance


This section describes the data collected to establish the general level
of awareness of RFID technology that exists within ICT management
in the Irish retail grocery sector. The purpose of collecting this data
was to identify, to some degree, the base position from which RFID
technology is starting within the population being researched.

Table 7.I1 shows that all three participants in the interviews described
awareness of RFID within their respective company as being at either a
low or medium level, ranging from an awareness of the technology at a
concept level to an awareness of the technical aspects of the
technology.

The survey results presented in Figure 7.S1 show that the


overwhelming majority of respondents, 94%, are aware of RFID at
either a concept or detailed technical level.

Based on knowledge of their trading partners operations, all three


interviewees described the level of interest in RFID in relation to the
ICT outlook for the Irish grocery retail sector as low (Table 7.I2) with
―little or no interest expressed by trading partners‖ (Interview
respondent B., 2006).

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 62
Only one of the three interviewees had access to internal expertise on
RFID, a group wide ICT design authority charged with providing
technology roadmaps for companies within the group and providing
best practise guidelines for implementing that technology. All three
participants in the in-depth interviews included print media, the
internet and IT suppliers are being the sources from where they would
seek information on developments in RFID. GS1 were identified by
two of the three interviewees as being another source of information on
RFID.

In response to a question on where guidance would be sought on best


practice in relation to implementing RFID, a small minority of 6% of
respondents to the survey identified internal expertise as the source
while the majority of respondents identified either GS1 or technology
suppliers, with 41% and 53% respectively, as being the source they
would use.

The findings in Table 7.I5 show that one interviewee confirmed being
actively involved in an RFID initiative, the evaluation of a proposal to
use RFID to track roller cages, while the remaining two interviewees
were neither aware of nor involved in any RFID initiative within the
sector.

Figure 7.S3 describes the survey results in relation to the respondents‟


companies‟ involvement in RFID activities. A small minority of 6% of
respondents have deployed or are in the process of deploying RFID
technology, 13% are actively evaluating the technology while the
remaining 81% have no plans or are monitoring developments in the
technology.

Despite the relatively low level of awareness and activity described in


the interviews, two of the interviewees described the future potential of
RFID as being important with it eventually becoming a key technology

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 63
in the sector (Table 7.I3). The third interviewee felt it was too early to
know the future potential of the technology.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 64
RREESSPPO
ONNSSEE RESPONDENT A RESPONDENT B RESPONDENT C
SSU
UMMM
MAARRY
Y  Low  Medium  Medium
D
DEESSCCRRIIPPTTIIO
ONN  Awareness at a concept level  Awareness at a concept level  Awareness at a concept level
 Awareness at a technical level  Awareness at a technical level
Table 7.I1 Opinions on Levels of Awareness of RFID within Respondents Companies

RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  Low  Low  Low
D
DEESSCCRRIIPPTTIIO
ONN  Little or no interest expressed by  Little or no interest expressed by  Little or no interest expressed by
trading partners trading partners trading partners
Table 7.I2 Opinions on Level of Interest in RFID w.r.t. ICT in Irish Grocery Retail Sector

RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  Important  Important  Unknown
D
DEESSCCRRIIPPTTIIO
ONN  Will eventually be considered a key  Will eventually be considered a key  Difficult to answer the question at
technology technology this point in time.
Table 7.I3 Opinions on the Future Potential and Relevance of RFID to Irish Grocery Retail Sector

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 65
RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  External and Internal Sources  External Sources  External Sources
D
DEESSCCRRIIPPTTIIO
ONN  Print media and the internet  Print media and the internet  Print media and the internet
 IT Suppliers  IT Suppliers  IT Suppliers
 GS1 and Institute of Logistics  Conferences  GS1
 Internal CTO & Design Authority.
Table 7.I4 Sources of Information Referenced for Developments in RFID

RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  No  Yes  No
D
DEESSCCRRIIPPTTIIO
ONN  Not currently involved with or  Currently involved in an RFID  Not currently involved with or aware
aware of any RFID initiatives. initiative. of any RFID initiatives.
Table 7.I5 Aware of or Involved in any RFID Initiatives in the Irish Grocery Retail Sector?

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 66
Other (please
specify)
0%
We have deployed or
I am not familiar are in t he process of
with the term RFID deploying RFID
0% t echnology
6%
I am familiar with Ot her (please
the term RFID but We are current ly specif y)
do not know what evaluat ing RFID 0%
I am familiar with
it means t echnology in
the term RFID and We current ly have no
6% relat ion t o our
am aware of the plans in relat ion t o
business.
details of the RFID
13%
technology 38%
35%

I am familiar with
the term RFID and
understand the We are current ly
concept of the monit oring
technology development s in
59% RFID.
43%

F ig ur e 7.S1 Level o f awar eness o f R ad io F r eq uency Id ent if icat io n


( R F ID ) T echno lo g y? Fi gur e 7 . S 3 Compa ny a c t i v i t i e s i n r e l a t i on t o RFI D t e c hnol ogy ?

Figure 7.S1 Level of Awareness of RFID Technology Figure 7.S3 Company Activities in relation to RFID Technology

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 67
7.5 ICT Capabilities and Business Processes
The results of both research and commercial RFID trials have strongly
suggested that the benefits of RFID applications will increase
significantly as companies increase the degree of collaboration and
information sharing with trading partners. Other factors that have been
identified as impacting on the potential to benefit from RFID include:

 The level of data collaboration between trading partners in the


supply chain (Alexander et al., 2002b, Bornhövd et al., 2004,
Chappell et al., 2003).
 The degree to which current supply chain processes are defined and
working (Chappell et al., 2003).
 The ability of a company‟s ERP system to handle item level data as
opposed to product type level data – e.g. Barcode Vs EPC
(Bornhövd et al., 2004)
 The ability of a company‟s ICT infrastructure to handle the flood of
data that can result for RFID implementations (Chawathe et al.,
2004, Sarma et al., 2004).

The purpose of collecting this data was to identify how well positioned
companies in the sector are, in terms of their ICT infrastructure, in
order to take advantage of RFID technology.

All participants in the in-depth interviews reported good levels of


collaboration and information sharing with trading partners. In this
instance the term „good levels‟ can be interpreted as meaning
information links are established with most of their key trading
partners - “in as far as is practical within the sector” as one interviewee
responded (Interview respondent C., 2006). Another participant
referenced the “80-20” Pareto principle (Wikipedia®, 2006), while
elaborating on the meaning of „key trading partners‟, to describe how
80% of their business is with 20% of their trading partners and that
collaboration and information sharing is good with these key trading

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 68
partners but poor or non-existent with the remainder. Table 7.I6
presents a summarised interpretation of the interviewees‟ responses on
this issue.

The survey results in relation to collaboration and information sharing


found that 94% of respondents used electronic data interchange (EDI)
to exchange some form of business data with their trading partners. 41
of the overall respondents use EDI to exchange business transaction
data while a further 53% also use EDI to exchange business alignment
data (e.g. product catalogue data). 6% of respondents did not
implement EDI with any of their trading partners. These results are
presented in Figure 7.S4.

Inadequacies in the current product catalogue data alignment processes


across the supply chain was a common issue between all the
participants in the in-depth interviews. Current product catalogue data,
such as product price and marketing details, are distributed from
supplier to distributor to retailer using manual fax or email processes in
a variety of formats. A unanimous call for a standardised and
automated process for this data exchange was elaborated on by
respondent C in identifying a need for the use of Global Synchronised
Data Networks (GS1, 2006b) in resolving this issue. Tables 7.I7 and
7.I9 present the in-depth interview findings in relation to aligning
product data across the supply chain.

Well-defined internal supply chain business processes, to a detailed


level, were reported by all the in-depth interview participants (Table
7.I8). One respondent stated that one of the ways their company strives
to reduce costs is by minimising the number of handling „touches‟ an
item encounters within the supply chain and processes are defined to a
degree that provides the level of detail required to measure those
„touches‟.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 69
The findings of the survey show that 35% of the respondents also
define their processes at a very detailed level, while 59% have their
processes defined at a high level. Figure 7.S5 presents a graphical
representation of the full survey findings in relation to the level of
detail that respondents‟ companies define the supply chain business
processes.

Knowledge of their ERP system‟s capabilities in relation to RFID


ranges between none and basic for the participants in the in-depth
interviews. One respondent‟s ERP system supplier was proactive in
promoting the RFID capabilities and potential of the system and has
been the driver for an RFID pilot project that was being evaluated for
approval at the time of the interview. The other respondents had no
knowledge of the RFID capabilities of their ERP system but expressed
a confidence in the reputation of their ERP product, as leading brands,
to deliver in this area when required. Table 7.I10 presents the results of
the in-depth interviews on this topic.

The results of the survey show that a small minority of 12% of


respondents are aware at a detailed level of their IT systems
capabilities in relation to RFID. 35% were aware at a high level and
53% had never evaluated their systems in relation to RFID. These
findings are presented in Figure 7.S6.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 70
RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  Good  Good  Good
D
DEESSCCRRIIPPTTIIO
ONN  EDI with larger trading partners for  EDI with larger trading partners for  Information links established with
core business transactions (i.e. core business transactions (i.e. most of their trading partners.
Orders and Invoicing) Orders and Invoicing)
 Data alignment collaboration with a
minority of trading partners.
Table 7.I6 The Degree of Collaboration and Information Sharing with Trading Partners

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 71
Business alignment
Other (please specify) data only (e.g.
0% Product/price
We do not use EDI with
catalogues, customer
any of our trading
data, etc..)
partners
0%
6%

Business alignment and


Business transaction
transaction data (e.g.
data only (e.g. orders,
Product/price
invoices etc..)
catalogues, orders,
41%
invoices etc..)
53%

Figure 7.S4 Use of Electronic Data Interchange (EDI) to exchange any of the following with your
trading partners?

Figure 7.S4 S The use of EDI to exchange business data with trading partners

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 72
RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  Product catalogue data  No significant gaps  Product catalogue data
 EDI with all trading partners
D
DEESSCCRRIIPPTTIIO
ONN  Product related information (codes,  The current degree of supply chain  The lack of a Global Data
prices, descriptions, marketing collaboration implemented is Synchronisation Network (GDSN)
details etc..) is currently exchanged sufficient for the purposes of our means there is no synchronisation of
through manual processes. internal business processes. product data across the supply chain.
 Smaller trading partners do not have
skills or resources to implement
EDI.
Table 7.I7 Gaps in Current Supply Chain Collaboration with Tradng Partners

RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  Yes  Yes  Yes
D
DEESSCCRRIIPPTTIIO
ONN  No standard automated processes in  No standard automated processes in  No standard automated processes in
place to distribute product master place to distribute product master place to distribute product master
data across the supply chain. data across the supply chain. data across the supply chain. Need
for a GSDN.
Table 7.I9 Do Product Master Data Maintenance Issues Exist in your Supply Chain?

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 73
RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  Internal processes well defined  Internal processes well defined  Internal processes well defined
 External less well defined
D
DEESSCCRRIIPPTTIIO
ONN  In general our processes are well  Very aware of how processes should  High degree of collaboration and
defined and understood. and do work within their business process control at retail level.
areas.  Lesser degree of collaboration and
process control at supply level in
Irish market.
Table 7.I8 The Degree to which your Business Processes are Defined

RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  No knowledge on this.  Basic knowledge  No knowledge
D
DEESSCCRRIIPPTTIIO
ONN  SAP – As a leading brand ERP  ERP supplier has been active  Do not know details of it‟s RFID
system, it is assumed that this promoting it‟s RFID capabilities. capabilities.
system has or will have some  Do not know the system‟s technical  Development would be required to
capabilities in this area. capabilities in relation to handling integrate RFID with the ERP system
item level data but assume it has  Understanding of the technical
capabilities in this area. architecture required.
Table 7.R10 Current ERP System Capabilities in relation to RFID

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 74
Our pro cesses
are unkno wn and
undefined. We are aware at
0% a detailed level
o f o f o ur IT Other (please
Other (please
systems specify)
Our pro cesses specify)
capabilities in 0%
are kno wn but 0%
relatio n to RFID.
no t defined. Our pro cesses 12%
6% are defined at a
very detailed
level.
35%
We have never
evaluated o ur IT
We are aware at systems in
a high level o f relatio n to RFID.
o ur IT systems 53%
capabilities in
Our pro cesses relatio n to RFID
are defined at a 35%
high level.
59%

F igure 7 .S 6 . A wa re ne s s o f yo ur IT s ys t e m s ' c a pa bilit ie s


7 .S 5 T he de gre e t o whic h yo ur c o m pa ny ha s de f ine d it s s upply
c ha in re la t e d bus ine s s pro c e s s e s ?

Figure 7.S5 The degree to which processes are defined Figure 7.S6 Awareness of your ICT Systems Capabilities

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 75
7.6 Strategic Perspective
RFID, as part of automatic identification systems, has been described
as a truly transformational technology in relation to the supply chain
with the potential to drive enormous shareholder value (Alexander et
al., 2002b). Some sources have suggested that, with the large
discounters winning the battle of logistical efficiency, RFID offers
large retailers and their suppliers an opportunity to gain a competitive
edge over discounters by assisting them improve efficiencies within
their supply chains (Elfers and Ulrichs, 2006). The purpose of
collecting this data was to identify the perceived strategic relevance of
RFID to ICT management in the Irish grocery retail sector as well as
the factors that might provide obstacles to its introduction into that
sector.

During the in-depth interviews, participants were asked how RFID


rated within their current ICT management priorities. The responses
ranged from ―no rating‖ to ―low‖ and are presented in Table 7.I12.
Although respondent B‟s company is actively involved in an RFID
pilot the company still considered RFID to have a low priority and,
while “cautiously evaluating the benefits”, it was most likely that the
company “would look to other companies to prove the case” before
significantly investing in the technology.

Trading partner demands, internal process improvement initiatives and


the implementation of global data synchronised network (GDSN)
standards were all cited in the differing responses of participants in the
in-depth interviews as factors that will drive RFID in the Irish grocery
retail sector (Table 7.I13). In explaining the choice of GDSN as a key
driver of RFID, respondent C was of the opinion that ―the success of
global and local data pools will provide the foundation upon which
cost effective RFID implementations can be built.‖

In the survey, the most significant driver of RFID in the sector


identified by respondents was a close run between pressure from

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 76
trading partners and the need to improve internal processes, with the
former being chosen by 46% of respondents and the latter by 40%.
Statutory regulations in relation to traceability and GDSN were each
identified by 7% of respondents in the survey. These findings are
presented in Figure 7.S8.

The size and value of the Irish grocery retail sector, in terms of the
many small to medium sized operators in the sector will be a
significant obstacle to investment in RFID within the sector. This is the
view of two of the three respondents interviewed whom both raised
concerns as that many small suppliers and retailers have insufficient
resources and ICT skills to invest in and implement RFID. Respondent
C echoed these concerns but did not believe all trading partners would
need to involved in an RFID implementation in order to achieve a
benefit. This view is based on the fact that ‟80%‟ of their business is
done with-„20%‟ of their trading partners, i.e. the Pareto principle also
cited by respondent A in response to a question on the levels of
collaboration and information sharing with trading partners. These
findings are presented in Table 7.I14.

In discussions on any „unusual company/product characteristics that


might pose a challenge for RFID technology‟, two of the three
participants in the in-depth interviews cited temperature sensitive
products as being a possible a challenging product to apply RFID
technology to. Two participants also raised the lack of an indigenous
manufacturing capability as posing a problem for the introduction of
RFID technology, the relevant point being that any attempt to
introduce RFID would require investment and co-operation from
external manufacturing entities that may not evaluate the Irish market
as a being of a sufficient value to justify the investment. The low
monetary value of both traded and consumer product units (e.g. a box
of soup packets) would make it difficult to find a business case to
justify the investment in RFID. Respondent C highlighted the
significant and growing share of the Irish grocery retail sector owned

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 77
by small independently owned branded convenience stores. Although
these stores are part of a franchise and must conform the certain
centralised trading standards setup by the franchise operator, the use
and level of investment in ICT is not an area that the franchise operator
can issue a mandate on to the retailer. These findings are presented in
Table 7.I16.

Two choices dominated the survey responses on the most significant


obstacle to the adoption of RFID by the respondent‟s company (Figure
7.S9). An overwhelming majority of 81% of respondents chose
„Identifying a return on investment (ROI) to justify the cost‟ as the
most significant obstacle, while the remaining 19% chose „the lack of
mature standards in relation to RFID technology‟.

Table 7.I15 shows a consensus of opinion that RFID alone will be


unlikely to drive a consolidation of suppliers in the Irish market.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 78
RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  No rating  Low  Low
D
DEESSCCRRIIPPTTIIO
ONN  No view on this at present and is not  Cautiously evaluating the benefits of
on the plan. RFID at present.
 Would look to other companies to
prove the business case.
Table 7.I12 Opinions on RFID rating in relation to current ICT management priorities

RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  Trading partner demands  Unknown  GSDN
 Cost
D
DEESSCCRRIIPPTTIIO
ONN  To maintain or develop a business  Too early to determine the factors.  The success of global and local data
relationship with one or more  It is possible an initiative to improve pools will provide the foundation
trading partners internal processes in this company upon which RFID implementations
would drive it. can be built.
Table 7.I13 Opinions on the Factors that will Drive RFID in the Irish Grocery Retail Sector

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 79
Other (please
Other (please Statuto ry specify)
specify) regulatio ns in 7%
Reducing lo st
6% relatio n to
sales due to "o ut The need to
traceability.
Reducing o f sto cks" impro ve internal
7%
invento ry levels 31% pro cesses and
13% efficiency.
40%

Impro ving
A uto mating security to
pro o f o f delivery reduce shrinkage
(Go o ds-In : 0%
Impro ving o rder P ressure fro m
reducing invo ice
picking accuracy custo mers to
adjustments)
(Go o ds-Out) implement RFID.
13%
37% 46%

F igure 7 .S 7 Whic h o f t he f o llo wing a re a s , wit hin yo ur bus ine s s ,


F igure 7 .S 8 M o s t s ignif ic a nt driv e r o f R F ID in yo ur c o m pa ny?
do yo u t hink ha s t he m o s t po t e nt ia l t o ge ne ra t e a re t urn o n
inv e s t m e nt f ro m t he a pplic a t io n o f R F ID t e c hno lo gy?

Figure 7.S7 Area with most potential for ROI due to RFID Figure 7.S8 Most significant driver of RFID

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 80
RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  Yes  No  Yes
D
DEESSCCRRIIPPTTIIO
ONN  Many small suppliers and retailer  A core value of company is fair  Sceptical of the ability of the
with insufficient ICT skills and trading terms for all trading suppliers and distributors to deliver
resources to implement RFID. partners. an RFID infrastructure to the quality
 Not all trading partners need to levels required for a successful
implement it. implementation.
Table 7.I14 Will the Size/Value of the Irish Grocery Retail Sector be an Obstacle to Investment in RFID?

RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  No  Unlikely  No
D
DEESSCCRRIIPPTTIIO
ONN  RFID alone is unlikely to drive a  RFID alone is unlikely to drive a  Irish consumer market is choice
consolidation consolidation orientated and requires a wide
 Too early to assess the potential variety of products and suppliers to
impact RFID will have. deliver that choice.
Table 7.II5 Opinions on whether RFID could lead to a consolidation of Suppliers

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 81
RREESSPPO
ONNSSEE RREESSPPO
ONND
DEEN
NTT A
A RREESSPPO
ONND
DEEN
NTT BB RREESSPPO
ONND
DEEN
NTT CC
SSU
UMMM
MAARRY
Y  Manufactured abroad  Temperature sensitive  Franchise business
 Temperature sensitive
 Low value
D
DEESSCCRRIIPPTTIIO
ONN  Not in control of how all products  To use RFID to audit and improve  This company has no authority to
are manufactured and/or RFID the consistency of correct mandate the use of technology to
tagging. temperature control on products it independently owned franchise
 Low value products make it difficult would require RFID to be shops to avail of this company for
to make a business case. implemented across the supply shared service economies of scale
chain. (e.g. electronic invoicing etc..).
Table 7.I16 Unusual Company/Product Characteristics that might Pose a Challenge for RFID Technology

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 82
0%

0%

19% Identifying a Return on Investment (ROI) to


justify the cost.

0%
The availability of sufficient expertise in RFID
implementations.
0%
Security concerns in relation to RFID tags
(e.g. counterfeit and virus tags)
The lack of mature standards in relation to
RFID technology
Public perception of RFID in relation to
concerns over privacy and health.
Other (please specify)

81%

7.S9 The most significant obstacle to the adoption of RFID by your company?

Figure 7.S9 The most significant obstacle to the adoption of RFID

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7.7 Additional Points of Interest
Respondents made a number of additional points of information during
the interview, either in response to specific questions or to themes that
arose during tangent discussions during the interview. This section
attempts to record those points made that have most relevance to the
research and to highlight any consensus of opinion that may have been
expressed in this manner.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 84
ISSUE RESPONDENT A RESPONDENT B RESPONDENT C
Awareness  Awareness at IT strategy level.  Greatest awareness within IT dept.  Greatest awareness within IT dept.
Data Sharing  There is very little data alignment  Information links established to as far
collaboration (e.g. product information a degree as is practical in the sector.
not exchanged).
ICT Capabilities  RFID technology is beyond the current  Sceptical that RFID can build on the  RFID and ICT capabilities within the
sector it is likely to be sometime
ICT capabilities of many of smaller investment in processes and
before the potential of RFID is
trading partners. technology made for EDI systems. unlocked.
Standards  GS1 should be more proactive in  Essential for standards to be  There is a need to implement GSDN
enforcing standards in order to developed and enforced to facilitate standards for sharing product
minimise the expense companies need lower costs of implementing RFID.. catalogue information.
to make in order to implement RFID
with multiple trading partners.
Business Case  Difficult to see benefit to supplier.  Currently evaluating business case  Very difficult to see the business case
for pilot RFID project to track roller for RFID in the grocery (FMCG)
cages. sector. E.g. RFID tags on
sandwiches?
Investment  It is rare for large trading partners to  No indigenous manufacturing
invest in initiatives to improve the industry  Irish market is reliant on
entire supply chain so all links benefit. independent distributors. These are
Normally more specific focus. less inclined to invest in improving
the processes for a particular trading
partner as they deal with many.

Table 7.7.1 Additional Key Data from In-depth Interviews

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8 Conclusions
8.1 The Driving Forces
With many companies still evaluating the potential and actual benefits
of this technology, the application of RFID could still be considered to
be at an early stage of development within the international retail
grocery sector. The evidence on the ground suggests RFID
implementations are primarily driven by three key forces within this
sector. (See Figure 8.1A).

1. Large retailer initiatives

2. Manufacturers of high value goods

3. RFID suppliers and standards bodies

Figure 8.1A Forces Driving RFID within International Retail Industry

The first and most powerful of these forces is the collective will of the
largest retailers in the US and Western Europe. This research has made
reference to RFID initiatives by Walmart, Metro, Tesco, Sainsbury and
Marks and Spencer to name but a few. A common objective of these
RFID initiatives has been to improve supply chain process efficiency.
However, one of the most telling features of these initiatives has been
the focus on processes within the retailer‟s domain (ACNielsen, 2005b,
Karkkainen, 2003, Wal-Mart, 2006, Warren, 2004). Although in
several cases the manufacturers/suppliers were required to install RFID
tags on their transport units or products (e.g. pallets, roller cages,
items, etc..), there is no evidence to show that significant investment
was made in developing supplier-side infrastructure to exploit the
RFID technology. Retailers have not demonstrated a desire to improve
efficiency across the supply chain in its entirety, but rather just to

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improve those parts of the supply chain that exist at the interface to or
within their own operational borders.

The second force driving the application of RFID within the


international retail community is that of manufacturers of high value
products. Companies such as Gillette, Proctor & Gamble, Pfizer and
EMI are implementing RFID solutions to improve the security and
traceability of their products (Jones et al., 2004, Tellkamp, 2006, Wall
Street Journal, 2006). The high monetary value of the products
manufactured by these companies means the financial cost of
shrinkage, due to damage or theft, and lost sales due to counterfeit
products provides a significant window of opportunity to justify an
investment in RFID technology in order to minimise these activities. In
contrast to those driven by retailers and by their very nature,
manufacturer driven initiatives are more comprehensive in terms of
their coverage of the entire supply chain.

The third key force is more subliminal in nature. With no real leverage
in terms of financial incentives to force the use RFID within the
international retail community, suppliers of RFID technology and
solutions (Gilbert, 2005, Chappell et al., 2003, Bornhövd et al., 2004,
Alexander et al., 2002b), along with RFID standards bodies, such as
GS1 and EPCGlobal, have invested in raising the profile of RFID and
providing guidelines on the implementation of RFID within various
commercial scenarios in order to influence the relevant financial
decision makers. These activities aim to establish RFID technology as
a strategic ICT investment in the minds of ICT management and
provide the roadmaps needed to help potential customers make the
decision to invest and successfully implement the technology.

In the context of the Irish market, there is anecdotal evidence that


RFID suppliers and the standards bodies are actively promoting the
technology through mediums including conferences (ConnectRFID,
2006) and in one case, as reported by one of the participants

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interviewed as part of this research, by encouraging companies to
undertake a pilot project to evaluate the potential benefits using RFID.
Indeed, the profile of RFID in Ireland has made the national business
paper front pages in recent months with the opening of the world‟s
largest RFID research and development centre by IBM in Dublin
(McArdle, 2006).

Without an indigenous FMCG manufacturing industry of significance


within Ireland, it is unlikely that supplier initiatives will drive the
introduction of RFID in the Irish market. Distributors play a vital role
in the supply of FMCG products within the Irish market. The evidence
from our interviews suggests that these parties typically distribute
products from several manufacturers and would not be conducive to
investing in ICT to accommodate supply chain improvements in a
minority of those manufacturers‟ products.

The most likely driver of RFID technology within the Irish market will
be pressure from large retailers. 46% of respondents to the survey cited
pressure from customers as the key driving force while 40% selected
internal process improvement. These choices were endorsed by the
data gathered in the interviews with one third of participants choosing
pressure from large retailers and internal process improvement alike.

The conclusion drawn from this is that a combination of both of these


factors is likely to drive this technology within the Irish retail grocery
sector. Large retailers will have leverage to pressurise trading partners
into investing in new technology but, as we have seen with EDI,
pressure is no guarantee of action and many suppliers are capable of
resisting pressure to incur costs without a clear cut business case to
recoup those costs. Retailers must demonstrate a willingness to invest
in the potential benefits of RFID beyond their own borders if other
stakeholders in the supply chain are to embrace this technology.
Suppliers and distributors must consider the implementation of RFID
as an opportunity to review and possibly re-engineer supply chain

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processes, beyond the direct application of RFID, in order to establish
a business case to justify any investment in RFID. The initial sparks
that will ignite these driving factors within the Irish sector remain
elusive at this stage.

8.2 Creating a Win-Win Proposition - The Key Challenge


It is evident from the literature reviewed that the most significant
challenge for ICT management, identified by the leading international
academic and corporate proponents of RFID technologies, is the ability
to justify the cost of investing in RFID. A series of research and white
papers, commissioned by corporate retail giants and RFID technology
suppliers, provide guidelines on the benefits of RFID, how to build a
business case (Angeles, 2005), how to calculate a return on investment
(ROI) and how to prepare for an RFID implementation project. These
papers have been developed in order to assist and guide ICT
management in determining the suitability of RFID applications to
their business and developing a competent business case to gain
approval for investing in it. The repeated occurrences of this theme
within papers, reports and correspondence on RFID makes it clear that
the big players in this field of technology are aware that the ability of
ICT management to demonstrate an ROI to their financial sponsors
will be a critical success factor for the rollout of RFID throughout the
industry. Ultimately the retail giants and technology suppliers can
themselves only hope to realise the full potential of RFID technology if
it is used throughout the industry supply chain. It is this vested interest
that motivates them to provide the multitude of freely available high
quality resources in order to raise awareness, educate and assist in
propagating the use of RFID in the sector.

An overwhelming majority of 81% of respondents to the survey of


Irish retail grocery sector selected “Identifying an ROI to justify the
cost” as the most significant obstacle to the adoption of RFID by their
companies. This sentiment was echoed by participants in the in-depth

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interviews with two thirds of participants stating they had difficulty
identifying a business case for RFID while the remaining one third
were initiating a pilot project to evaluate whether a business case could
be made.

The difficulty in establishing a business case is magnified within the


Irish retail grocery sector for a number of reasons, some of which
challenged widespread investment in EDI within the sector in the past:

―In relation to EDI, the key issue is the development of a national EDI
infrastructure providing real time links between retailers and
suppliers. There are concerns among small companies that they are at
a competitive disadvantage in relation to communications costs and
services relative to competitor suppliers in other countries.‖
(Forfas, 1999)

The relatively small size and value, in international terms, of the Irish
market and the majority of players in that market place make it very
difficult for individual companies to fund capital intensive investments
in ICT.

Another key challenge for the Irish retail grocery sector is its lack of an
indigenous manufacturing base. Any RFID initiative within Ireland
would most likely need the cooperation of an overseas manufacturer or
an independent distributor to deploy RFID infrastructure. It may be
difficult for an international manufacturer to justify an investment in
technology for a customer operating in one of Europe‟s smallest
markets. The opinions proffered by participants in the in-depth
interviews suggest that independent distributors will also be reluctant
to invest in technology applicable to only a subset of their customers.

Although the specific causes may be different to those in Ireland, the


effect of retailer driven RFID initiatives on suppliers is similar
internationally. Research in the UK suggests for retailers to realise the

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 90
full potential long term benefits of RFID a fundamental strategic
review of the allocation of costs of RFID infrastructure throughout the
retail supply chain must be undertaken (Jones et al., 2004). In the
absence of such an undertaking, retailers will continue to attempt to
prevent suppliers from passing on investments costs (McCue, 2004,
Warren, 2004) Suppliers will require vision and creativity to think
beyond the traditional justifications for ICT investments in order to
identify a business case for RFID. All suppliers will need to focus on
very specific pilot projects to demonstrate the potential cost and benefit
of investing in RFID (Angeles, 2005). Beyond this, for small suppliers,
maintaining a presence in the market place may be the only return on
investment. For larger suppliers, RFID can be considered a strategic
investment and its potential value evaluated in the role it can play in
protecting the business from long-term threats such as competition
from new retailing business models such as discounters (Elfers and
Ulrichs, 2006) or in its potential to reduce labour requirements in a
demographic of an ageing world with a shrinking workforce.

This conclusion is best summarised by the concise response of a


respondent to the survey carried out as part of this research in relation
to the challenge of making a business case for RFID that is facing the
Irish retail grocery sector:

―RFID will be strategic and will incur unrecoverable costs‖


(Respondent to RFID and Irish retail grocery sector survey, 2006)

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8.3 Collaboration and Alignment - The Key Opportunities
The operational benefits of RFID in the FMCG supply chain have been
well reported on in several research and commercial papers. The
benefits include:

 Reducing out of stocks


 Shipping efficiency and accuracy
(i.e. Order picking/ Automated proof of delivery)
 Improved security of products
 Reducing labour intensive processes
 Reducing inventory levels
 Asset tracking
(Agarwal, 2001, Alexander et al., 2002b, Fitzek, 2003, Gross and Lo,
2003, Jones et al., 2004, Karkkainen, 2003)

From the above list, „Improving order picking accuracy‟ and „reducing
lost sales due to out of stocks‟ dominated the responses made in the
survey of the Irish retail grocery sector‟s views areas with the most
potential to benefit from the application of RFID.

Participants in the in-depth interviews suggested shipping efficiency


and accuracy along with asset tracking would be key areas that RFID
has potential to add value.

Based on the spread of response to this question the conclusion drawn


is that the Irish retail sector stands to benefit from the same range of
opportunities available to retail sectors in other countries. The specific
benefits and opportunities will be very much dependent on the business
context in which RFID is deployed.

In terms of strategic opportunities, RFID has implications for


companies operating in the Irish retail grocery sector. International
research into RFID has determined that companies

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 92
―with manual or paper-based systems performing each- and case-pick
operations will see the highest level of benefit‖
(Chappell et al., 2003)

Research has also suggested that the deployment of an RFID solution

―will change the IT infrastructure, business processes and operational


processes of an organisation.‖
(Bornhövd et al., 2004)

The critical role ICT infrastructure will play in the success of RFID
implementations is highlighted ElAmin‟s (2006) article on a recent
commercial report on RFID:

―Companies must also reassess the readiness of their IT infrastructure.


Connectivity and infrastructure costs can account for moe than 50 per
cent of an RFID investment.‖
(ElAmin, 2006)

Keeping those findings in mind, the interviews and survey data


collected as part of this research show a consensus of concern from key
players in the Irish retail grocery sector at the current ICT
infrastructure and business process capabilities of the majority of
suppliers in the Irish sector. Given this poor base from which it would
appear the sector is operating from, and recent activity in the sector in
relation to Global Data Synchronisation Network (GDSN™) (GS1,
2006b) demonstrating its willingness to consider radical developments
in its processes, the introduction of RFID could provide an opportunity
for the sector to learn the lessons of the EDI age and leap frog into a
new reengineered framework of ICT infrastructure and processes in
order to enhance trading partner collaboration and exploit technology
in a transformational way.

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8.4 Tuning to the Right Frequency – Standards and Guidelines

The lack of mature standards currently available in relation to RFID


technologies was cited by 19% of respondents to the survey and by all
participants in the in-depth interviews as being a key obstacle to the
adoption of RFID within their companies. Participants in the
interviews explained that the importance attributed to standards is
based on its relationship to cost. The argument is that availability of
ICT solutions based on open international technology standards helps
to reduce the cost of those solutions and to protect investments made in
the technology. Some international industry analysts estimate that
standards may reduce prices of tag components by 80% (ACNielsen,
2005a). The hope is that standards will, in the words of one interview
participant,

―provide the foundation upon which cost effective RFID


implementations can be built.‖. (Interview respondent C, 2006)

This argument is rooted in experience, particularly in relation to EDI,


singled out by one interview participant as having a poor record in
terms of the compliance with and enforcement of consistent
implementations of international standards within the Irish sector. It is
felt that trading partners have been allowed to implement variations of
agreed international standards resulting in suppliers having to make
significant investments in EDI solutions each time they wish to trade
electronically with a new buyer in the sector.

The evidence reviewed in this research suggests the vested interests in


the success of RFID are learning the lessons of past technologies and
have made the establishment and implementation of standards the
kingpin of their strategy for the successful global adoption of RFID
technologies. From the MIT Auto-ID laboratory, to the Auto-ID centre,
to EPCGlobal and GS1, the sponsors of RFID have focused on the
delivery of standards based solutions. These standards have now been

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 94
ratified and endorsed as global standards by the International Standards
Organisation (ISO) (O'Connor, 2006).

In conclusion, ICT management in the Irish retail grocery sector can


and should expect RFID technology suppliers to provide solutions that
are certified as compliant with the standards marshalled by the
EPCglobal. Figure 8.4.1 shows the certification logo awarded to
suppliers of products compliant with EPCglobal standards. EPCglobal
and GS1 are the main source of information on the current status of,
and developments in, these standards (EPCGlobal, 2006) and should
be consulted for the latest information before embarking on a new
RFID initiative.

Figure 8.4.1 The EPCglobal Hardware Certification Program Logo

In relation to case studies and guidelines, a number of resources are


available to assist in the process of evaluating and preparing a business
case for RFID applications across a range of supply chain related
business scenarios. Details of these resources are presented in section
7.2 of this document entitled „Making a Business Case for RFID‟.
These resources provide a combination of theoretical and practical
knowledge on best practise and lessons learned in relation to RFID
implementations and can make a valuable contribution to ICT
managers preparing for the introduction of this technology.

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8.5 Tags, Readers…Action? – The Readiness of the Irish Sector

One of the primary objectives of this research was to try to gauge the
level of readiness of ICT management in the Irish retail grocery sector
for the introduction of RFID technology. The factors considered
relevant to determining the readiness of this sample populated are
detailed in the introduction to the „Findings and Analysis‟ chapter,
section 7.1 of this document. The interview schedule and survey
questionnaire were designed to collect data from their respective
sample populations in such a way as to facilitate the analysis of that
data within a framework of these factors, summarised here as:

 Awareness
 ICT and Business Process Capabilities
 Strategic Relevance

A point was made by two of the participants interviewed that 80% of


their business is done with 20% of their trading partners. Process and
information collaboration with this 20% is very good. A business case
for process improvement initiatives (e.g. EDI) can often be made once
the support of this 20% of trading partners is obtained. Given that the
rate of response to the online survey invitations was approximately
20%, there is a strong possibility that trading partners within this more
valuable 20%, represented the majority of the respondents in the
survey.

The results of the online survey corroborates the evidence gathered


during the in-depth interviews and suggests the Irish retail grocery
sector is not well positioned for the introduction of RFID technology.

There is a low level of awareness of the technical aspects and real


applications of RFID across the sector. Although the participants
interviewed had a good technical understanding of the technology and

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 96
its supposed benefits, the majority of respondents to the survey were
aware of RFID but at a concept level only.

There has been little or no activity in relation RFID initiatives within


the Irish retail grocery sector as of the time this research was carried
out. A small number of internal implementations or initiatives were
reported but there has been no RFID initiative mandated or proposed
by a dominant, or otherwise, trading partner in the sector.

Strong concerns were raised, by all the participants in the in-depth


interviews, in relation to the ICT and process capabilities of the vast
majority of the suppliers and distributors in this sector being
insufficient for EDI not to mention RFID. The findings also show the
majority of ICT management have never, or only at a high level,
evaluated their ICT infrastructures in relation to RFID integration
capabilities.

Strategically, identifying a business case for investing in RFID is by


far the most significant challenge to the introduction of this technology
to the sector, with 81% of all respondents selecting this as the main
obstacle. The majority of participants interviewed considered RFID as
a technology to be monitored for now while a minority are cautiously
evaluating its potential.

There are, however, a number of positives, in relation to the potential


for RFID to play a role in the Irish retail grocery sector in the future, to
be taken from the findings.

A small minority of respondents reported implementing RFID


solutions for internal inventory control and asset tracking applications.
Positive feedback from these minor initiatives could build momentum
and appetite in the sector for further developments.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 97
Despite concerns by the participants in the in-depth interviews for the
poor process control capabilities that exist in the majority of suppliers
and distributors within the sector, the results of the survey suggest that
a strong majority of respondents have their current supply chain
processes defined at either a high or detailed level. EDI coverage is
also very high within the respondents to the survey. This puts the
respondents in a good position to identify the areas most likely to
benefit from the introduction of RFID applications and to unlock their
full potential by building on the collaborative links in the supply chain
already in place for EDI.

There was a consensus, from the participants interviewed, on the need


for mature standards to be established and complied with in order to
maximise competition between suppliers of RFID technology and
ensure dominant trading partners‟ initiatives remain compatible with
any agreed standards in the area. The consensus on this issue should
bring it to the attention of RFID technology suppliers and standards
bodies to ensure it is addressed accordingly.

There was also a consensus, by all respondents, on the need to


establish a business case for the application of RFID before it will be
considered for investments. If this concern is acknowledged by large
retailers, the most likely to drivers of this technology within the Irish
sector, then it may lead to a more holistic approach to how the costs of
RFID are allocated across the supply chain.

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8.6 Summary
In the concluding sections of this research, the forces most likely to
drive the introduction of RFID within the Irish retail grocery sector
were identified and discussed. The need for retailers to demonstrate
how suppliers and distributors can achieve a return on investments in
RFID applications was also highlighted. The positive outlook for the
establishment of, and compliance with, comprehensive standards in the
technology is presented along with a recommendation for ICT
management to exploit the wealth of case study and theoretical
guidelines that have been developed to assist in the preparation for, and
implementation of, RFID implementations by academic and
commercial sources alike.

The implications of the key results of the interviews and online survey
were then discussed The ultimate conclusion of this discussion is that
although ICT management in the sector are focusing on the relevant
factors that, if addressed, will improve their position in relation to the
introduction of RFID technology, such as the need for more efficient
data alignment processes and standards as well as the concern for how
a return will be made on investments in RFID, it is not well positioned
to take advantage of this technology at this point in time. For now, it is
RFID from a safe distance for ICT management within the Irish retail
grocery sector.

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8.7 Limitations of Research and Areas for Further Research
One limitation is the possibility of bias in either the design of the
interview or survey. Although precautions were taken to prevent bias
being introduced, it is possible that sub-consciously some form of bias
was introduced due to the researcher‟s prior knowledge of the sample
population and the business contexts they operate in. Another
limitation of this research is the relatively small sample population that
responded to the on-line survey. 17 respondents from 100 invites to
participate is a response rate above the typical average. However, 17
respondents in terms of the overall number of trading companies in the
Irish retail sector is around 3 to 4 %. This may not be significant
enough to provide the true representation of the sector.

As a result of interviews diverting from the defined schedule into


discussions on tangent issues, and from additional feedback
volunteered by a number of respondents to the survey, this research has
encountered a number of areas that may warrant further research. Two
of the those areas with a close association to RFID are listed here:

1. The potential for the development of a cross-organisation


framework to share RFID infrastructure costs across the supply
chain

2. The potential relationship and value that GDSN™ initiatives


and momentum may have for the successful rollout of RFID
technology.

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 100
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University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 107
APPENDICES
I. The In-depth Interview Schedule

ID QUESTION
5.1.1 How would you describe the level of awareness, within
your company, of RFID in terms of the technology‟s
capabilities, relevant standards, implementation models
and commercial implementations in the retail sector?
5.1.2 From the knowledge you have of your trading partners
outlook in terms of Information and Communications
Technology (ICT), how would you describe the level of
interest in RFID across the Irish grocery retail sector?
5.1.3 What is your opinion on the future potential and
relevance of RFID to the Irish grocery retail sector?
5.1.4 What sources of information would you look to for
guidance on developments in relation to the relevance
and potential of RFID to your business?
5.1.5 Are you involved in or aware of any RFID initiatives in
the Irish grocery retail sector?
5.2.1 How would you describe the degree of collaboration
and information sharing in existence between your
company and its trading partners?
5.2.2 What gaps, if any, exist in the supply chain
collaboration with your trading partners?
5.2.3 How would you describe the degree to which your
company‟s business processes (both internal and
external – i.e. whole supply chain) are defined in terms
of their relevance to your company‟s business?
5.2.4 Are there issues in terms of maintaining accurate
product master data across the supply chain?
5.2.5 What do you know about your company‟s current ERP
system‟s capabilities in terms of storing item level data
and/or integrating with RFID technology?
5.2.6 Do you think your company would seek external
expertise to assess and develop its ICT infrastructure‟s
ability to manage RFID data?

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 108
ID QUESTION
5.3.1 How would you rate the importance of RFID in relation
to your company‟s current list of ICT management
priorities in the medium to long term?
5.3.2 What factors would you expect to drive the introduction
of RFID in your business sector?
5.3.3 Indications are that implementing RFID will require
significant investment by trading partners all along the
supply chain. Based on your company‟s experience of
introducing new technology into the sector, do you
think the size/value of the Irish grocery sector and the
relatively small to medium size of some of the players
in this sector will be an obstacle to the sector investing
in RFID implementations?
5.3.4 Could the introduction of RFID lead to a consolidation
of suppliers in the sector in order for suppliers to be in a
position to afford and benefit from RFID?
5.3.5 Can you think of any unusual characteristics of your
company‟s products and/or supply chain processes that
might pose significant challenges to the implementation
of RFID technology?

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 109
II. The Online Survey Questionnaire
The online survey questionnaire is available at the following universal
resource locator:

http://www.surveymonkey.com/s.asp?u=875312406176

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 110
III. The Research Timeframe
JAN FEB MAR APR MAY JUN JUL AUG SEP

Define Research Structure

Literature Review

Arrange
Interviews

Define Interview

Define
Questionnaire

Hold Interviews

Distribute and
Collect
Questionnaire

Analyse
Research
Findings

Prepare 1st Draft of Dissertation

Additional Literature Review

Prepare 2nd Draft of


Dissertation

Prepare Final Version


of Dissertation

Figure 10.1.1:Research Task Timeline

University of Dublin | Trinity College M.Sc. MIS Research Dissertation (TCDMSCMIS2006DMC01) Page 111

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