1. Business Impacts of RFID-aided Supply Chains Research Results from the Hasso Plattner Institute 2011 SAPPHIRE NOW May 16-18, 2011 – Orlando, Florida Matthieu-P. Schapranow Hasso Plattner Institute

2. Agenda Key Facts about the Hasso Plattner Institute European Pharmaceutical Supply Chain RFID-aided Supply Chains Event Repositories Anti-Counterfeiting Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 2

3. Key Facts about the Hasso Plattner InstituteInternals Founded as a public-private partnershipin 1998 in Potsdam near Berlin, Germany Institute belongs to theUniversity of Potsdam Ranked 1st in CHE 2009 and 2010 500 B.Sc. and M.Sc. students 10 professors, 92 PhD students Course of study: IT Systems Engineering Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 3

4. Key Facts about the Hasso Plattner InstituteResearch Group Hasso Plattner / Alexander Zeier Research focus: real customer data for enterprisesoftware and design of complex applications In-Memory Data Management for Enterprise Applications Human-Centered Software Design and Engineering Maintenance and Evolution of SOA Systems Integration of RFID Technology in Enterprise Platforms Cooperations Academic: Stanford, MIT, etc. Industry: SAP, Siemens, Audi, etc. Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 4

5. Key Facts about the Hasso Plattner InstituteWhat can we do for you? Network between industry and academia,e.g. European section of the Curriculum RFID seminars for graduate / undergraduate students Trends & concepts lecture (Prof. Hasso Plattner) Enterprise Application Architecture Laboratory Enterprise software, e.g. SAP, Microsoft, etc. Equipped RFID Lab, e.g. deister electronic, noFilis, etc. Concrete sizing and simulation of customer supply chains Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 5

6. European Pharmaceutical Supply ChainManufacturing Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 6

7. European Pharmaceutical Supply ChainCounterfeits Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 7

8. RFID-aided Supply ChainsComponents for Anti-counterfeiting Anti-counterfeiting service provider validates authenticity of concrete item for customers, e.g. in a pharmacy Discovery Service supports to identify appropriate Electronic Product Code Information Services (EPCIS) repository EPCIS repository contains all event data for handled products of a certain supply chain partner Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 8

9. RFID-aided Supply ChainsParties Approx. 30 billion pharmaceuticals in Europe per year Supply Chain Roles Manufacturers: ≈2.2k Wholesalers: ≈50k Retailers: ≈140k Logistics Providers End Consumers Service Provider for Anti-Counterfeiting Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 9

10. RFID-aided Supply ChainsRFID Enablement Two main operating models:on-premise vs. on-demand Provider of an on-demandsolution operates requiredhardware and softwarefor RFID enablement centrally Costs advance of an on-demand> 88% compared to on-premise On-demand reduces costs forsetup and software Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 10

11. RFID-aided Supply ChainsAmortization Model supply chain of length l=4, amortization period a=5 years: s Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 11

12. RFID-aided Supply ChainsEvents Production rate: ≈951 pharmaceuticals per second At least 8 events per item are expected (lower threshold) 1x manufacturer: CREATE + SHIP 2x wholesaler: RECEIVE + SHIP 1x retailer: RECEIVE + SELL Events in the global supply chain: ≈7,608 / s Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 12

13. RFID-aided Supply ChainsNetwork Traffic for Operating a Service Provider Network traffic c, p pharmaceutical goods, supply chain length l For the European pharmaceutical supply chain: p=30 billion, and l=4: c=137.19TB / 18,965 USD per year Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 13

14. HPI Research ResultsReal-time Security Extensions Problem: Granularity of protection, e.g. event- vs. attribute-level Hypotheses: In-memory is feasible for fine-grained access control Insert-only reflects data pattern for EPC networks Keeping a history of all queries supports access control Access rights can be adapted in real-time without specifying restrictions explicitly Rule-set can be applied in parallel Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 14

15. HPI Research ResultsQuery EPC Event Data Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 15

16. HPI Research ResultsFilter Data and Control Access Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 16

17. HPI Research ResultsDiscovery Service Prototype for EPCglobal Discovery Service Based on in-memory technology Performance results are applicable for pharmaceutical supply chain Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 17

18. What to take home? Challenges in the pharmaceutical supply chain Investments for RFID enablement and operational costs for an anti-counterfeiting service provider are adequate HPI prototypes based on in-memory technology fit for demands of the pharmaceutical supply chain Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 18

19. Thank you for your interest!Keep in contact with us. Hasso Plattner InstituteEnterprise Platform & Integration ConceptsMatthieu-P. SchapranowAugust-Bebel-Str. 8814482 Potsdam, Germany Business Impacts of RFID-aided Supply Chains, Schapranow, SAPPHIRE NOW, May 18, 2011 Responsible: Deputy Prof. of Prof. Hasso PlattnerDr. Alexander Zeierzeier@hpi.uni-potsdam.de Matthieu-P. Schapranow, M.Sc. matthieu.schapranow@hpi.uni-potsdam.de 19