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Jean-Michel Corrieu
IBM Europe, Pervasive/Wireless e-Business Technical Sales Manager
May 25th
What is Wireless Computing
A great deal of innovation has brought us to the point where the silicon
core of an radio tag is now 0.4mm
Currently radio tags can be purchased for less that €0.25 in quantity.
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t ONS
Product
Information
12
rne Internet
te Server (PML Format)
In
Antenna
Write data Items with RF Read Transaction Application
Reader
to RF tags RF Tags Manager Data Store Systems
Antenna Trading
Partner
EDI /
1 2 3 4 5 6 7 8 XML
Systems
Tag/Item
Relationship 10
Database 9
The number of tags that can be simultaneously read/written is limited to about 50 – 100 /
second
Tag technology is not mature, intensive research is being conducted both at the
theoretical (e.g., antenna design) and manufacturing (e.g., material used, processing
techniques)
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Aligning RFID to business strategy is dependant on
the forces that are driving change - multiple factors
influence how a particular company might view RFID
High TRANSFORMATION
OPTIMIZATION Transform
Opportunities & Benefits
operating/business models
Increase throughput Enable new sources of
Reduce labor requirements revenue
COMPLIANCE Enable Warehouse Enable collaboration with
Management external clients/suppliers
Meet minimum requirement Enable JIT Maintain item historical
(e.g. DoD, Walmart) manufacturing/logistics records (where it has been
Replace or supplement Enable real time decision and what it has been
existing barcode support through)
systems/applications Track/Trace goods
Provide internal track/trace of
Increase accuracy and goods/people throughout the value chain
decrease error rates of both internally and externally
Automate and speed
existing applications
(inventory management, etc.) processes (e.g. cross
Low docking)
Low Complexity High
Source: IBM Business Consulting Services analysis
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Developing an RFID strategy – Looking for BUSINESS VALUE
Strategic Financial
How can RFID enable our overall strategic What is the expected return on our RFID
vision? investment?
Should we be a leader or a “fast follower”? What specific RFID applications can drive
Which trading partners should I pilot with value for us?
and when? What is a realistic adoption pattern/rate of
How will we operate in a world of dual RFID and how will that impact my business
processes? And for how long? case?
Organizational Technological
What are the change management What are our technology requirements for
implications? an RFID implementation?
What are the risks involved in an RFID What is the architecture that best delivers
implementation? on my strategic technology plan?
How will an RFID implementation impact
our current applications?
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Business Value
On Demand
Operating
Environment
Bu
Innovative
sin
business designs An IT operating
es
that sharpen focus
sP
environment
and accelerate
roc
optimized for
growth Business
es
Business flexibility and
se
Transformation
Transformation resilience
s
Integrated, end-to-end business
processes that are built to change
Based on real customer cases with
real business processes
Aggregate
Analyze
Physical On Demand
Environment Infrastructure
Act
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RFID Across All Sectors
Healthcare
Retail/CPG
Government
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IBM’s Divisions Supporting RFID
Industry (S&D, BCS) IGS SWG
Consulting Tech
RFID Focussed Services RFID Group
Software Group
Trained • Solution Development
• Alliances
Systems
Group
Sensors &
Actuators
Personal Software Development
Systems Alliances
Group Standards Bodies
WW RFID Focused
Community
FOAK
Research Solution Development
IBM has a matrix, non-hierarchical teaming approach to RFID
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IBM’s View – RFID will deliver value in the context of
current mission critical business processes
Strategy Business Strategy Pilot
Services Case Assessment Definition
Partners Exchanges
Partner Collaboration
SC Planning SC Execution Asset Mgmnt CRM
WPS Portal
Business Partner Performance SC Event Mgmnt Security Promotion Mgmnt
VMI/SMI Warehouse Mgmnt Shrink Mgmnt Assortment MgMnt
Process Track & Trace Price Optimization
CPFR/ SC Collabor Order Management
Production Planning Trans. Logistics Counterfeiting Targetted Marketing
Process Websphere
Websphere BusinessBusiness Integration
Integration For Collaboration
Communication
Integration & Connectivity
DB2 Db2 Integrator
Architecture
Management
Directory
External Data
WBC Gateway
Auto-ID
Acquisition
RFID Edge Server RFID Edge Server
Enablement
/ONS
Reader Reader Reader Reader Reader Reader
Auto-ID
Tags
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IBM laboratories worldwide - 8 research centers focused
on RFID advanced learnings, 3 testing labs
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Customer Reference: Supply Chain: IBM Fishkill Plant
• $2.5B Corporate 'from scratch' investment in 300mm Manufacturing and Development. Fishkill
then made the decision to use RFID after assessing barcode and infra red systems. The plant
Challenge needs to use thousands of different active containers for different functions that are transferred
from storage area, process tools and manufacturing facilities - all of which are very valuable
($1K per container holding goods worth ~$2M). Their challenge was to create a real time,
common container tracking system
• Every container has an integrated passive RFID tag with a unique ID (common across all IBM
sites) - know where its been, where its going and its history
• IBM software is used to create and write the ID to all new containers
Solution • The contents of the container, wafer or recepticle, are associated with the ID in the Factory
Control System's DB2 database
• The transponder is read at every processing step to validate that the correct container and
material are going to the correct process tool result
• Fabs moved from infrared systems to RFID allowing real-time vs. point to point tracking of wafer
Benefits containers (on average 25 wafers in each container) providing true track/trace capability
• RFID enabled increased efficiency, decreased error rates, and reduced labor requirements
• RFID systems facilitated prioritization of orders, processing of specialty orders, and order routing
during retooling or maintenance accelerating time to market
• RFID has enabled IBM’s 300mm fab to run with 60 to 70 people compared with an industry average of
100 to 120, allowing IBM to add value to its products without necessarily adding cost
• With automation enabled by RFID, IBM is able to run the plant with skeleton crew when normally they
would shut it down (e.g. holidays)
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Customer Reference: Supply Chain: Metro Group
The Metro Group Initiative has been up and running since April 28, 2003. The
Challenge initiative helps Metro track and manage grocery store inventory from the
distribution centre to and within the retail store environment
Metro has decreased misorders and lost inventory due to accurate visibility of inventory
from the distribution centre to the retail store
Real-time tracking of retail store inventory helps Metro order new inventory on-demand,
reducing “OOS” (out of stock) situations
POS checkout locations are monitored and staff added during peak hours to avoid
Benefits customer bottlenecks
Customers have instant access to information about products from kiosks located
through the store, improving customer satisfaction
Dr. Gerd Wolfram, Executive Project Manager, Metro Group Future Store of the Future
says “The tremendous success of the Metro 'Future Store Initiative' is also driven by
IBM's contribution to this innovative project. In particular IBM developed a RFID
Middleware and integrated a complex RFID solution with multiple functions on pallet,
case and shelf level."
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Customer Reference: Supply Chain: Philips Semiconductors
• The objective of the project was to help Philips increase inventory turns. The project provides
Challenge near real-time inventory visibility to the Philips Semiconductors business units. It will also enable
changes to policies in production and inventory planning systems which will, in turn, drive
increased inventory turns
• The project is initially between the Philips Semiconductors Kaohsiung (PSK) site and the
Regional Distribution Center Hong Kong (RDC HK) on all packaged quantities and boxes, all
customer direct ships (cartons) in AP from the PSK location, all cartons sent from the RDC HK to
all destinations and for EXEL (3PL) all outbound flows in Hong Kong
Benefits This project will help PSC to further optimize its supply chain and is another step in the route to
become an on demand company. The savings will be used to reinvest in competitive advantage and
growth.
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Customer Reference: Supply Chain: US Department of Defense
The U.S. Department of Defense is dedicated to becoming an early adopter of
Challenge Radio Frequency Identification (RFID) technology. The DoD is currently preparing
to read RFID tags at key sites within their supply chain. Beginning January 1,
Challenge 2005, the Department of Defense has mandated that all suppliers place passive
RFID tags at the case, pallet, and Defense Department Unique Identifier (UID)
item packing level.
Benefits
Benefits IBM seen as trusted brand for US DoD
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Customer Reference: Supply Chain: Sara Lee
Major field trial in RFID USA
Challenge
Step 1 pilot at one DC in compliance with Wal-Mart Mandate
Challenge Integrated to WMS
Step 2 roll-out in 2004 to more DCs (5 to 30)
Solution IBM chosen as RFID System Integrator and RFID Software Infrastructure and
Applications Provider
Solution uses Alien UHF tags and readers and Zebra and Printronix printers
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In Short, How do we Help Companies :
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IBM: a leader in mobile and wireless computing
The Yankee Group ranked IBM # 1 in A mid-2002 IDC report shows IBM and
March 2003 PwCC Wireless jointly have close to a
30% market share, and when
“IBM ranks first among the enablers of combined, are over 5 times the nearest
enterprise mobile computing solutions” competitors.
“IBM also boasts the most successful “IBM Global Services (IGS) is by far the
professional services business (IBM leading provider of mobile and wireless
Global Services) in the mobile computing professional services. One could be
space” shocked by seeing how far ahead IGS is”
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AMR Recent assessment of IBM
January 2004 release with Metro on Store of the Future and IBM's
involvement
http://www.amrresearch.com/Content/view.asp?pmillid=16933
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