11/8/2004 - According to VDC's recent research, Radio Frequency Identification (RFID) Middleware Solutions: Global Market Opportunity, end-users are ill prepared to handle to influx of data from RFID implementations. In fact, many have yet to master data quality issues with currently installed bar code solutions.
Many users indicated that they are experiencing difficulty extending their RFID pilots - especially in the consumer goods, pharmaceutical and military supply chains-because AIDC technologies, whether bar code or RFID, generate an unprecedented amount of information that their legacy systems cannot easily handle. They are finding that once RFID data is captured, the quality problems begin. For example, some pilots are missing up to 30% or more of the transponders passing by readers, producing a high volume of false negatives. Meanwhile, readers keep reading several times a second, piling up questionable data. And these are only tow examples of emerging issues with RFID data integration, collection, aggregation and filtration.
The method used to implement RFID systems can have a significant impact on these issues and the overall success of an RFID deployment. A quick fix (i.e. slap-ship-and-stop approach) may result in immediate installation and compliance, but will probably negatively impact the long-term benefits of an RFID system.
Respondents to VDC's survey contend that as the supply chain moves faster, deductions and penalties from retailers will be greater as they will require better synchronization and cleaner data. Without question, clean data and data synchronization is a top priority for any RFID implementation.
Venture Development Corporation (VDC) is an independent technology market research and strategy consulting firm that specializes in a number of embedded, industrial, defense and niche enterprise IT markets. VDC has been operating since 1971, when the firm was founded by graduates of the Harvard Business School and Massachusetts Institute of Technology. Today, we employ a talented collection of analysts and consultants who offer a rare combination of expertise in the market research process; experience in technology product and program management, and formal training in engineering and marketing. VDC's clients include thousands of the largest and fastest growing tech suppliers in the world and the most successful investors participating in the markets we cover.
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